Question

How does Covid-19 affect the global economy? (300 words)

Answer 1

Due to outbreak of covid 19 pandemic, it becomes essential for the entire nations to announce lockdown to reduce the spread of infection . Due to lockdown, businesses are closed , production has decreases and aggregate demand of goods and services also have decreased. Due to the spread, all economies face recession . Moreover, there is decrease in international treaded. Owing to all these circumstances, economic growth of all nations has decreased. Now, all nations suffering from inflation, unemployment and low real gross domestic product. All economies due to the pandemic are facing the worst time and hit such an hard way that is getting back to 20 years. There is decrease in GDP, per capita income , economic growth. It becomes hard for nations to survive and to increase the real GDP by bringing stability.

It has been given remark by International Monetary fund that global economy will shrink by 3 percent at the end of year 2020 and it is assumed that it is the steepest downward recession after the great depression of 2007-2008. Many of the economies namely United States , France , Italy , Germany and Spain are expected to have great decrease in the gross domestic product. The reason is that these countries are worse hit by the pandemic covid 19.

The outbreak of corona virus spread rapidly and have inverse impact on political, economic , social and religious aspect of economies. Moreover , there is entire ban on international flights and economic activities with the other nations. Due to that there is decrease in cooperation and prosperity among the nations .Banking system, stock markets are worse hit, because people lose their confidence and decrease to have saving in the financial institutions. If it will spread like this in the same manner , one day Nations will suffer from adverse impacts and it is essential to put control over the pandemic.