Question

How does COVID 19 effect the financial markets, real economy and healthcare systems of the BRICS countries??

Answer 1

The COVID-19 is the virus recently found in the China and that has been spread to worldwide now. It is from the family of Corona virus and it is unknown until now so there is no vaccine available for that. The spread of COVID-19 has been so fast and worldwide that the situation has been termed as pandemic. The pandemic has affected ll the world and developed countries like the US and Western Europe which has sophisticated healthcare sector is also seen struggling to cope with the situation.

The BRICS is the group of emerging economies which includes Brazil, Russia, India, China and South Africa.
The COVID-19 originated from the China itself and it is also spread to Russia and India. India and China has the population over 1 billion and these two countries also have a higher GDP.
The absence of vaccine means the Chinese and other government had to impose physical isolation or lockdown in the country or affected region. The economic activities have been hit very badly because of closure of businesses. There is no production in factories, no railways, no flights and that has affected the economy very negatively.
China which has a GDP of $13 trillion has hit by around 5% fall in the GDP until now. This has affected the credit off take as well as repayment.

China has not been completely transparent in dispensing the information and the actual figures of its effect is doubtful. The pandemic is now spreading in India and given its poor state of healthcare as well hygiene situation, the effect will be much more adverse. Brazil also have a quite poor healthcare system and South Africa has not been affected by the pandemic to that extent.

The BRICS countries will be hit badly in terms of real economy and its financial markets will also witness some chaos. However, Russia and China have quite advanced healthcare facilities so effect on that sector will be minimal.
India and Brazil will experience a lot of stress on its healthcare sector.