The covid-19 has significantly changed the global economy and has seen vast innovations taking shape. The use of technological applications has gone up tremendously. Way back in November last year, the coronavirus was a barely known disease, and its impact can be felt by everybody in the world today since it has spread globally within a few months.
The virus’s effect is vast, and hundreds of thousands of people have passed on, and lots of money is channeled towards treating the covid-19 victims, lots of jobs have been lost. It has forced a global lockdown, that brought many institutions under lockdown. The impact of the virus can be felt globally, with the most significant world economy affected negatively. The workforce has been changed, sending the world economy to a recession and a global depression.
Here are the impacts of covid-19 on the world economy;
Global tourism is in a crisis since the outbreak of coronavirus in China. The virus has caused a lot of panic and forced people into lockdown. This lockdown implies that no travel can take place, and the hotel industry forced to scale down or completely shut down its operations. Tourists are scared and fear for their lives and would not dare traveling around or visiting local hotels as this would mean risking their lives. The International Labour Organization predicts up to 25 million people will lose jobs in the year 2020 as a result of the coronavirus. Covid-19 has caused airline bookings to be canceled, causing a reduction in income. China’s tourism industry is significantly affected as the sector contributes up to 11% of its GDP.
The effect of the coronavirus hardest hits the transport industry, hotels, and cruise operators. The transport industry felt the immediate repercussions upon the outbreak of the virus at the peak of the Lunar New Year in Asia. Usually, this is a jam-packed travel session in Asia.
The Covid-19 impact has caused cancellations of trips, public events, and seasonal employment realignment, and a decrease in profits and income for the hoteliers and the airline industry.
OPEC has predicted a 19 % reduction in the global daily oil demand, which has seen a sharp decrease in oil prices. The International Air Transport Association predicates a 5% global reduction in revenues generated by the industry.
The stock market has felt the impact of covid-19 on its trading. Investors at the financial markets have been forced to sell out stocks due to fear caused by this pandemic. There are big swings in the stock market as company shares are being sold and bought, which could impact the worth of individual savings on the stock. Dow Jones and Nikkei have recorded a significant fall in stock trading since the beginning of the year 2020. So far, this is the biggest quarterly fall witnessed by Dow Jones and Financial Time Stock Exchange (FTSE) since the year 1987.
The Covid-19 has created a massive impact on the world economy, and it continues to create more havoc in society. Millions of jobs have been lost, and it may take years for the world to recover fully from the impact of coronavirus on the economy. The effect of covid-19 is not all detrimental to the economy; the use of technology and online casinos has significantly spiked. Most people have resorted to conducting their transactions online, and those who want to have some fun are playing online games. Several governments have stepped in this war against the coronavirus, food ratios provided to citizens, and taxes on wages, foodstuff, and medical bills waived.