Impact of Coronavirus on global economy

COVID-19 is an infectious disease caused by a newly discovered Corona-virus. This virus has been named SARS-CoV-2.  COVID-19 is also known as Corona-virus disease.The Corona-virus disease came to light on December 31, 2019 when China informed about this to World Health Organisation. Now WHO has declared it a pandemic. The infected cases by Corona-virus are increasing continuously all over the world. At present it affected more than 4 million people world wide and this figure is still increasing rapidly. World economy collapse due to COVID-19. It adversely affect the economic system of world. Due to COVID-19 world has to suffer a lot and seeking a huge loss.

impact of coronavirus on global economy

Before understanding the impact of Corona-virus (COVID-19) we need to understand some basic concept. As we know the whole economic system is based on the consumption. Consumption is the thing by which a economy run. Consumption play an important role to generate income. When the consumption goes up the economic value goes up. When there is no consumption that mean there is no spending and if there is no spending than it will affect the income of other person. If income of a person is affected than it will definitely unable to spend money for there basic needs. So in this way the economic cycle of consumption-income-consumption broke. In the present time,due to COVID-19 we are suffering with the huge consumption loss that's why this economic chain of consumption is brokering.

The second most important thing is foreign exchange. Foreign exchange and the foreign investment both plays very important role for the economic development of any country. When foreign investment is happen in any country than the government of that country get the foreign exchange as money. Due to corona-virus all international borders are seal in all aspects that's why governments are not getting the foreign exchange, governments have to face a huge income loss.

The third most important thing for any economy is export,but due to corona-virus disease most of the countries are not doing the international trade. So exports are all decline again it is also related to the income of country.

So these three things plays very important role in bringing down the consumption, at present all these three things are happening and we know when consumption goes down the whole economy have to suffer badly. Corona-virus impacted the economy at very large scale.

coronavirus impact on economy

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Business affected by Corona-virus crisis

The services which is affected by this crises are services which are completely on offline mode. If there is any business which is not working online than they have to face a huge loss in the present scenario. Airline business and restaurant industries is in huge loss. According to some newspapers airline business have to face bankruptcies at the end of this may. This means the struggle is really huge. At this time, there are also some gainers like eCommerce companies in china, these companies are supply goods and services which the help of technology like drones, which contain less human involvement during this crisis. So these types of technology help during the time of crisis.

What will happen after corona-virus crisis

Now the most important question for the world is that how world economy will recover. So the recovery of the economy is fully depend on  the basic of the economy. After the crisis every person will try to consume in any way and the consumption will definitely go up, but what will happen with the other sectors like how you will tackle the unemployment sector in the countries. We know that technology is improving day-by-day. Technologies like Automation,Robotics,machine learning are coming in and these king of technology will stole the jobs. Robots are giving a lot of challenge to the human being because they do not need vacations,they keep on working.So that's why the companies are preferring robotics. So this is your responsibility to choose a job which have a good prospect in the near future and they are not affected by this technology up-gradation.

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