Question

Discuss the effects of Covid-19 pandemic on economic globalization. Explain it.

Answer 1

The emergence of the Covid-19 pandemic worldwide has disrupted the entire world's political , social , cultural, religious and financial systems. The world's biggest economies such as the United States , China, Britain, Germany , France , Italy, Japan and many others are on the verge of failure. In top of that, financial markets around the world were hammered and oil prices fell off a cliff.

Amid the coronavirus pandemic, lockdowns were resorted to by many countries across the world to "flatten the curve" of the infection. These lockdowns meant that millions of residents were confined to their homes, that factories were shut down and almost all economic activity ceased. The global economy is predicted to contract by more than 3 per cent in 2020 – the steepest recession since the Great Depression of the 1930s, according to the International Monetary Fund ( IMF).

The pandemic has pushed the global economy into a recession, meaning the economy is beginning to shrink and growth is stopping. In the US, disruptions associated with Covid-19 have led to millions filing for unemployment benefits. The estimates were at 20.5 million in April alone, and are projected to increase as the pandemic 's effect on the job market in the US worsens.