NAME: JUDE EMMANUEL B.

BAYOT
SECTION: MMA-201
COURSE: BACHELOR OF MULTIMEDIA ARTS
SUBJECT: THE CONTEMPORARY WORD

THE EFFECTS OF PANDEMIC ON GLOBAL ECONOMY

I. INTRODUCTION

According to the Statistic Research Department (2020). “The economic damage

caused by the Coronavirus 2019 pandemic is largely driven by a fall in demand,
meaning that there are most consumers to purchase the goods and service available in
the global community. This dynamic can be clearly seen in heavily affected industries
such as travel and tourism.”

Due the ongoing coronavirus 2019 pandemic this largely affects and slows down over
daily lives and largely affects our global economy. With the millions of deaths and
the increasingly. Fast changes in the number of cases throughout the globe, this
pandemic look a huge toll in the globe economy of every country which decrease the
number of incomes that come and go.

In the business and trading, and tourism industries, the coronavirus 2019 pandemic
brought these productions into depressions that cause on major defeat in the lives of
every individual, some even lost their jobs due to this virus that once again cause a
downfall in the economy because of the lack of incoming and release of goods and
products from each countries cause a deficit in all the aspects of the deficit.

The June 2020 Global Economic prospect express both immediate and near-term
outlook for the effect of the pandemic and the long term damage it give out to
possibility for growth. The biggest global recession in decades, despite the very
unusual efforts of governments counter the downturn with fiscal and monetary policy
support.
 This Crisis high spots required for urgent action to cushion the pandemic health and
economic outcome to protect the risk of population and set for a long lasting
recovery.

II. BODY

On March 11, 2020 the World Health Organization. Indicate Coronavirus 2019 as a
pandemic, declaring to over 3 million cases and 207,973 deaths in 213 countries and
area. The virus has not one’s become a public health crisis. However as well affected
the Global Economy. The important economic effects before show over, the global
because of decreased productivity, loss of life, business closures, trade disruption, and
decimation of the tourism industry. Coronavirus 2019 possibly that a “ weake up”
Name for Global leaders to increase assistance on epidemic awareness and give the
essential subsidize for worldwide common act. Have been enough details on the
anticipated economic and health come to infectious disease epidemic. How ever the
world has knocked down to sufficiently invest in preventive and preparedness
measures to reduce the chance of big epidemics.

For globalizations, urbanization, and environmental change contagious disease

outbreaks and epidemics has changed into global study needed a collective response.
Even through the majority of progress countries. Mostly European and North
American, have powerful real time. Supervision and health in order to manage
infectious disease outspreads developments in public health capacity in low-income
and high risk-countries including human and animal monitoring work. Force and
emergency-response strengthening laboratory resources -used to be assisted by using
national resources supplemented with international donor funding international
collective action between governments, non-governments organizations and private
companies has been promoted in building and financing technological policy to
expedite the reach out on development reaction new pathogens with outbreak
possible. During the Coronavirus 2019. Like cooperation is critical. Mostly for the
growth and production of a vaccine. The Coalition for Epidemic Preparedness
Innovations (CEPI) a global partnership launched in 2017, has tracked global effects
in Coronavirus 2019 vaccine development project and is recommending for strong
international cooperation to make sure the vaccine when established will be
manufactured in adequate amount and that unbiased access will be provided to all
nations regardless of ability to pay. More over affected countries may benefits from
as changing technological innovation in contact tracing, like as health quick response
codes , to control the breakout more effectively. Although will be important privacy
suggestion have need of considered. Furthermore the affect on affective economic
action consumers typically changed their spending behavior. For the most part to
reduced earrings and household budgetary. Furthermore the worry and panic that
 accompany the epidemic. Service sectors. Including tourism , hospitality and
transportation have suffered significant losses because of decrease on travel.

Global stock exchange come to be to much impacted by the impact of Coronavirus

2019 spread. The quantity of cases develop to amplify globally, along the US, Italy ,
Spain , Germany, France, Iran and South Korea. The World financial and oil markets
significantly declined.

Starting of the year, leading U.S and Europeans stock market indices (the S+P 500, F
TSE, 100, CAC 40, and DAX) have lost a quarter of their value, with oil prices
declining by more than 65% as of April 24, 2020. Daily data on stock market
volatility. The price increased are good index of consumer and business confidence in
the economy. Come to be notable negative connection between the everyday number
of Coronavirus 2019 cases and various stock indices. The economic larger problems
are related by means of possible and potential future demand , for oil translating into
fluctuation in oil prices because of decreased economic activities driven during the
Coronavirus 2019 pandemic. Anticipated to much supply, as well responsible for
significant price reductions.

If ever the lower oil rate pursue, many oil – dependent economics may contract
following reductions in trade and investment. Shocks to the labor markets would be
alarming , mostly for poor countries.

World wide migrant workers have contributions to the labor markets, addressing
imbalances in both high and unskilled labor.

The world wide travel limitations are probably to stay for the predictable future as
countries try to half the spread of Coronavirus 2019. Migration flows should be
restricted . hindering global economic growth and development.

III. ANALYSIS

The COVID-19 pandemic is a Global Shock, like no other involving at the same time
disturbance to both supply and demand in an interconnected world economy. One of
the supply side, infections, reduce labor supply and productivity, while lockdowns,
business closures and also social distancing causes supply disruption.

One of the demand side, layoffs and the loss of income (from quarantine and
unemployment) and increased economic prospect, reduce household consumption and
firm’s investment. The impact of the pandemic could create a dangerous cycle of
decrease, business and consumer confidence and secure financial conditions which
could lead to job losses and investment. Key challenges for any observed economic
analysis of COVID-19 are how to identify this uncommon shock, how to account for
its non-linear effects. How to consider its cross-country spill overs and other observed
and global factors and how quantity the uncertainly surrounding forecasts, given its
unprecedented nature.

A speedily body of research investigates, heterogenous, non-linear and unpredictable

macroeconomic outcome of Coronavirus 2019 beyond countries. In addition at the
global level. Pagano et. Al (2020) and Capelle-Blancard and Desroziers (2020),
consider the effect the results of the pandemic on the US stock market and highlights
its differential impact on various sectors of the economy ludvigson et. Al (2020)
quantify the macroeconomic impact of Coronavirus 2019 in this US using a VAR
framework and gauge of the magnitude of Coronavirus 2019 stock in relation past
costly disasters. Baqau and Farhi (2020). Consider possible linearities is in response
to the pandemic in a multi-sectoral model. They also illustrate low these shock are
intensified by nonlinearities, and quantify they effects make use of disaggregated data
from US.

Such as knowing to carry off the effects of infrequent events including of

Coronavirus 2019 and account for spillovers and interconnections of countries and
markets. First report that immoderate global volatility can affect output growth in
many advanced economies and several emerging markets.

The Coronavirus 2019 shock are recognized make use of IMF’s GOP development
growth revision in the middle of January and April 2020, under the expectation that
Coronavirus 2019 was the main trainer of these forecast revisions then quantify the
economic impacts of the shock by comparing the forecast of the world economy from
January 2020 to December 2021 with and without the Coronavirus 2019 shock make
use of global response functions. The description for sample report a range on result
by bootstrapping the conditional forecast based upon the aggregation of common
regional and country particular disturbances that the global economy had go through
in the past.

There are several channels along which uncontrolled global volatility can effect
economic growth. They contain higher precautionary savings. Lower or slowdown
investment and a higher cost of raising funds our country-by-country analysis
establishes the significance global volatility (whenever it exceeds an estimated
threshold level) for driving subsequent output growth with threshold level (and
corresponding probabilities of crossing it) estimated by maximum likelihood
procedure for advanced and emerging economies separately.
IV. RECOMMENDATION

The big damage of economic by the coronavirus 2019 pandemic is mainly driven by a
fall down demand. It means that are not consumers to purchase the products and
services accessible in the global economy. This dynamic obviously seen to tally
affected industries, including travel tourism. To express the increase of the virus,
countries placed restrictions on travel It means a lot of people cannot obtain flights
for holidays or business trips. In decrease of seller’s market causes airlines to lose
planned revenue, It means they use to cut their expenses by decreasing the number of
flights. Those take effect without government support, sooner or later airlines as well
need to decrease lay off staff to further cut costs on. The same dynamic put in to other
industries. Like for example with decreased demand for oil and new cars as daily
commutes, social gathering and holidays are no longer possible. Such as dynamic
that has economist. Contemplating even-if, the Coronavirus 2019 pandemic will bring
on to a global recession on the scale of the great depression.

Regardless impending danger that the global economy is in, there are also purpose to
be positive that this worst. Case scenario can be avoided. Governments have learned
from former disaster that the outcome of a demand driven of economic decline can be
checked with government spending. Accordingly , a lot of government are improving
their a location of monetary welfare to citizens, and ensuring businesses have a
acquire to the endowment needed to keep their staff employed all over the pandemic.
As well as the specific nature of this disaster means that more locality may benefit
including e-commerce , food retail, and the health care trade-providing no less than
several economic improvement offsets the damage. Eventually there is the fast that
the crises may have a clear and date when all limitation on mechanism can be lifted
(for example when a vaccine is developed) Generally this , way it is at learn probable
global economy as it may be encounter a sharp recover once the pandemic is beyond.
Near by still more changeable that could affect such an economic improvement to
give an example, lessen supply of goods and service to meet lower demand could
develop term shortages and price increases. However , there are more reasons to think
about with the night mix of applicable government responses and luck some of the
more apocalyptic projection may not come to pass.

V. CONCLUSION

The coronavirus will continue to spread the health, civilized and economically and
socially policies adopted by countries will decide. The speed and power of the
improvement. The International Labour Organization four pillar structure give out the
brief produce guidance but also for countries. As they progress the several time of the
 crisis. Not only for the global community as a whole. There must be a global human –
centered response which is grounded in unanimity.

An organized global effort is required to give assistance the country that currently do
not have enough fiscal space to finance social policy in especially universal social
protection procedure Deft sustainability should be prioritized in this effort.

Without long period constructional changes the deep rooted in equalities unprotected
by the crisis will purely intensity as well as approach in this quick results of the crisis
global community now has a special opportunity to appropriate plans. Aimed at
achieving civil rights and human centered future of work.

VI. WAY AHEAD

The coronavirus pandemic gas already affected the social life of people all around the
world (social distancing, Isolation) but also has its parallel on the world economy.

The whole world economy is so intertwined it will all come down. Some countries
are more interdependent than others and will suffer worse , but just the rate of decline
will be different .

To tackle coronavirus outbreaks effects on the nation many governments are making
hard decision that are going to effect the economy badly.

The major effects of coronavirus outbreak are on their way. Experts say that after
such massive lockdown, there will be a lot of demand for raw goods and production
essentials from all the sectors. But the manufacturing is shut there will be a huge
shortage of these goods and major giants their customers and also the economy will
face a major fall down and financial crisis but governments everywhere are working
tirelessly to create and implements policies to slow down the crisis.

The prediction for the future remain much more optimistic than not.

Looking ahead to next year respondents expectations for the economics are in
increasingly positive no doubt that we will recover come this challenge . our doctor,
nurses are fighting it around the clock, often risking their lives of others. Our
scientists will come up with solutions to break Coronavirus 2019’s grip between now
and then. We must marshal leaders. International organization to act decisively and
act together, to protect lives and livelihoods.

The actions take now will determine the speed and strength of our recovery.
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