The United Nations has said that due to the corona virus epidemic, the global economy could shrink by about one percent in 2020, compared to 2.5 percent previously. At the same time, the United Nations has warned that if the ban on economic activity is increased without providing adequate financial relief, then this decline could be further exacerbated.
An analysis by the United Nations Department of Economic and Social Affairs (DESA) states that the Covid-19 epidemic is disrupting global supply chains and international trade. The closure of the national borders of about 100 countries during the last month has brought a scary stagnation in people’s movement and tourism.
Millions of workers feared to lose their jobs
DESA stated, “Millions of workers in these countries are facing the prospect of losing their jobs. Governments are considering big stimulus packages to prevent their economies from going into recession. The worst-case scenario will be the global economy by 2020.” It can drop by up to 0.9 percent. “
The situation has grown in the global economy by 1.2 percent
With this, the global economy may register a growth of up to 1.2 percent this year, even if the situation improves. But this will happen only when there is a slight decline in private consumption and an increase in investment, exports and government spending. The organization said that the global economy had fallen by 1.7 percent in 2009. The DESA has stated that these losses could be even greater if governments failed to help the general public with financial aid and increased consumer spending.
What will be the effect of the corona virus on the global economy?
Rapidly spreading deadly corona virus worldwide has severely affected the global economy. This has affected both the demand and supply of goods and services.
The stock market, which was at the highest level two months ago amid the rising cases of the corona, has fallen by more than 20 percent today. International crude oil prices have fallen by 50 percent since the first meeting of the World Health Organization (WHO) on Corona on January 24, amid an increased supply of oil and decreased demand.
Corona’s impact on the world’s businesses can be seen, where companies are reducing their operations, employees are being asked to work from home and production targets are being reduced.
According to JP Morgan’s report, its Chief Global Strategist, Dr. David Kelly, said that the impact of being socially distant will be seen in the second quarter of 2020. The report here said- “After the social distancing, there will be maritime tourism, airline, hotels, casinos, sports programs, movies, theaters, restaurants, and other industries.” He feared that this would have a direct impact on the economy of the world, including the US, and many people would have to lose their jobs in the coming months.