COVID-19 and Global economy

The virus -Covid19- was first detected in the city of Wuhan, China, in 2019. The outbreak spread quickly across the world in 2020 and WHO declared it a global pandemic on 11 March. On March 11, 2020, the World Health Organization (WHO) characterized COVID-19 as a pandemic, pointing to over 118,000 cases and 4,291 deaths in 114 countries and territories around the globe. World Health Organization declared Covid-19 a pandemic which spreads between people mostly when an infected person is in close contact with another person.

It is totally impossible to keep the virus in-control in China which is a huge market of economy. The numbers of Corona virus cases had shifted different part of the world due to number of reasons. Global economy was one of the reasons in the spread of Corona pandemic. The pandemic spread worldwide due to many reasons; for instance due to tourism, international and national travelling, transmission through groceries packages and food items. First death reported in Europe was a Chinese tourist in France. A Belgium citizen who repatriated from Wuhan to Brussels tested positive for Corona virus. After corona outbreak in Wuhan and Hubei, many people left that place that cause the spread of virus around worldwide. Many countries of the world decided to repatriate their citizens from China, through this way corona virus spread speedily because at the start many countries have less prepared to cope with this pandemic. Many covid-19 positive patients did not expose earlier due to the lack of testing equipment. It is possible that corona virus might stay on fruits and other edible products that have been handled by infected person. Recently it is reported in January 2021 that corona virus was found on ice creams produced in China. Chinese government claimed that the ingredients were imported from New Zealand and Ukraine.

The Corona pandemic has not merely become a public health crisis but it also has affected the world economy.  Major economic impact has occurred worldwide like reduced productivity, loss of life, business closures, trade disturbance and demolition of the tourism industry. Many industries are facing different issues such as decrease in supply and demand, cancelation of export orders and shortage of raw material. Transportation problem was another reason that affected the global economy. Many countries continue to restrict tourism, especially from countries with a high number of Covid cases. Due to the halt in flight operations there was huge economic loss worldwide, also national travelling was banned due to which country costs badly in terms of transfer of food and other commodities. Import and exports were also suffered badly because at the current period of this pandemic, every country closed their borders. Restaurants and the food industry greatly impacted by lockdown caused in the Covid pandemic. Many large chains have closed thousands of their restaurants. Mass entertainment venues, such as concert halls and museums, also impacted. Covid-19 badly impacted the sports in the world. Even in Pakistan sports league PSL5 was postponed after overseas players were tested positive for coronavirus symptoms. Asian auto companies have closed markets due to shortage of spare parts. In short coronavirus disturbed the world economy; it is not easy to determine the exact impacts of the virus as the nature of virus is changing with time and God knows the situation that is yet to come. May Allah Protect Us From This Pandemic.

Fatima Haider
Fatima Haider
Writer is the student of MPhil Degree in International Relations at National Defence University Islamabad.