What Effect Did Corona Have On The Global Economy, Which Country Did A Better Job?
In the midst of the corona epidemic, many countries of the world resorted to lockdown to retard the curve of the number of corona-infected patients. The lockdown meant closing millions of people in homes, shutting down trade and prohibiting economic activity.
According to the International Monetary Fund, this year, ie in 2020, the global economy can go negative i.e. minus 3 percent, which is the biggest decline after the Great Depression of 1930. Now some countries are removing lockdowns and promoting economic activities. In this situation, we see how much economic damage has been caused to the world by the corona epidemic.
Corona’s impact on the economy
Kovid-19 is fighting the world with the disease and this disease has created a recession-like atmosphere in the global economy, that is, the economy is collapsing and growth has stopped. The corona virus has put millions of people on the unemployment list in America.
In the month of April itself, the number of unemployed in America was more than 20 million, which is expected to increase further. According to a report, by March 21, more than 360 million people have been unemployed, which is one third of the working population of America.
In addition, according to the analysis of the International Monetary Fund, manufacturing output in many countries has come to a standstill due to which external demand has declined and domestic demand may also see an expected decline.
The International Monetary Fund has predicted that the global economy will grow negatively this year. According to estimates, the economy will grow at minus three percent and it will be more dangerous than the financial crisis in 2009.
According to the estimates of the International Monetary Fund, the economies of these countries may suffer so much …
America – 5.9 percent
Japan – 5.2 percent
United Kingdom – 6.5 percent
Germany – 7 percent
France – 7.2 percent
Italy – 9.1 percent
Spain – 8 percent
In the first quarter of 2020, China’s GDP has seen a decline of 36.6 percent, while South Korea’s output has fallen by 5.5 percent. Although South Korea did not impose lockdown in its country, it emphasized more testing, quarantine and contact tracing. Looking at Europe, France’s GDP fell 21.3 percent, Spain’s 19.2 percent and Italy’s 17.5 percent.
Crude Oil and Natural Gas
The ban on travel has had a profound impact on global industrial activity. March saw a steep drop in oil prices. The imposition of lock down affected travel and transportation, due to which not only oil but also natural gas was affected.
Steps taken to overcome Kovid-19 led to a decrease in natural gas demand, resulting in many LNG buyers in China prohibiting imports as their reserves were not empty.
Food and beverages
According to the IMF, food prices may fall by 2.6 percent in 2020. This can be caused by blockages in the supply chain, delays at the borders and safety of food in Corona-infected areas.
Prices of cereals, oranges, seafood and Arabian coffee rose during the lockdown, but prices of tea, meat, wool and cotton were seen to decline. Palm oil, soy oil, sugar and corn prices declined sharply due to falling oil prices.
How did countries fight the corona virus?
Finance Minister Nirmala Sitaraman announced the Self-Reliant India Campaign Package in India and explained it in detail. He informed that small and medium businesses will be given relief as a credit guarantee under this campaign.
Many countries announced billions of rupees packages in the country to fight Corona. India has announced 10 percent of its GDP, Japan 21.1 percent, America 13 percent, Sweden 12 percent, Germany 10.7 percent, France 9.3 percent, Spain 7.3 percent and Italy 5.7 percent. did.
South Korea did not prohibit economic activities in its country, so there has not been much impact on its economy. China has also recently opened a lock down, after which the economy is slowly being opened.