On one hand, the world is making rapid progress in medical science. On the other hand, every year a new type of disease like corona virus is taking the form of epidemic, which is difficult to treat early. Such a pandemic causes huge losses to the economy globally.
According to the report of the European Parliament, due to the epidemic, the economy globally has to suffer a loss of 500 billion dollars or about 36,97,950 crore rupees. This figure is 0.6 percent of the total global income. According to the report of the World Bank, the number of deaths worldwide due to the epidemic is about 7,20,000.
Huge loss to economy
According to the report, in the year 2013-2016, the GDP growth rate of countries like Liberia due to Ebola virus has decreased by 8%. The countries most affected by these epidemics are poor and low middle income countries. The economy of the poor and middle income groups is affected by the rate of 1.6 per cent, while the developed countries are affected by the epidemic by 0.3 per cent. According to a joint report of the World Health Organization (WHO) and World Bank of 2019, the epidemic weakens global GDP by 2.2 per cent to 4.8 per cent. According to an estimate, the global economy suffers losses of up to $ 3 trillion. The epidemic has weakened the GDP of Sahara and African countries by 1.7 percent. This has caused a loss of 28 billion dollars to these countries. The International Monetary Fund (IMF) also believes that countries with weak economies are more affected by such epidemics. According to the World Bank report, before the Ebola epidemic, the economy of countries like Guana, Liberia was the fastest in the world. But due to Ebola, there was a famine in these countries due to lack of agriculture sector. Also, dependence on other countries for goods and services increased.
Epidemic has a direct impact on business
The public and private health system is first affected by the virus. Suddenly the number of patients admitted to hospitals increases. This increases administrative and operational expenses. For example, at the time of H1N1 between June 2009 and March 2011, there were increased admissions in 170 UK hospitals. Similarly, in the year 2017, medical expenses of Latin America and Caribbean countries increased by 718 billion at the time of Zika virus. The sector most affected by the epidemic is tourism. According to a report by the US Central for Disease Control and Prevention, HIV treatment costs an average of $ 23,000 annually. In 2010, this expenditure was $ 38,0000. Shopping malls close due to epidemic. Companies stop production, affecting the workforce. This also affects customer spending. Hong Kong, Singapore consumer spending was affected by the SARS virus in 2003, while a similar effect was seen in China due to the Corona virus.
Trade is directly related to the epidemic
The epidemic is directly related to trade, where the region in which the epidemic spreads, there is a decline in trade. At the global level, vertebrate i.e. fish , bird, animal causes 60% diseases in humans. This particularly affects agriculture and trade. At one time in the US, total meat production was reduced by 12% due to the spread of infection in animals. Similarly, in 1996, the outbreak of the Creutzfeldt-jakob disease affected the UK and £ 3.4 billion in trade. Similarly, in 1997, due to the spread of Rift Valley Fever, both production and trade of Somalia was reduced by 60 to 65 percent.