Economic Impact of Covid-19 Nurkhodzha Akbulaev: (SYLWAN., 164 (5) ) - ISI Indexed, May 2020 113

ECONOMIC IMPACT OF COVID-19
Nurkhodzha Akbulaev
Azerbaijan State University of Economics (UNEC), Azerbaijan, Baku
Faculty of Economics of Turkish World
Department of Economics and Business Administration, Lecturer
e-mail: nurhoca@gmail.com
Ilkin Mammadov
Azerbaijan State University of Economics (UNEC), Azerbaijan, Baku,
International Magistrate and Doctorate Center (IMDC), Economics and
management department; e-mail: ilkmammadov@gmail.com
Vasif Aliyev
Azerbaijan State University of Economics (UNEC), Azerbaijan, Baku
Faculty of Economics of Turkish World
Department of Economics and Business Administration
vasif.zireddinoglu@gmail.com
Abstract
This article focuses on the economic impact of Covid-19. It also reviews recent
trends and updates aimed at further understanding the problem of coronaviruses. The
article is divided into several chapters, each of which deals with the most important
aspects. The first section describes the methods of investigation of this infection. The
second part examines the theory of the epidemic and crisis, how exactly the coronavirus
affected the economy of countries. Then it is told when the virus appeared, where, how
the disease occurred in the infected, etc., i.e. its history of development. The fourth
Chapter describes the economic impact of Covid-19 on countries and how It can affect
the further development of the state. The fifth section focuses on the impact on the
production of various manufacturers ' products, as well as provides examples of the
most famous companies affected by Covid-19. What follows is a problem faced by the
entire population, namely how the coronavirus affected employment. The seventh
Chapter reflects the impact on exports, which countries have stopped exporting their
products, as well as the production of which has stopped, and the eighth-on imports,
which territories have stopped purchasing, previously purchased goods, and for what
reason.
Key words: Coronavirus, Covid-19, pandemic, countries, influence, distribution.
Introduction
Coronaviruses are a huge family of viruses that includes viruses that can cause a
number of diseases in people – from the most common cold to severe acute respiratory
syndrome, also called atypical pneumonia, and in some cases even inflammation of the
digestive tract.
Coronavirus infection accounts for 4-20% of all cases of ARVI.
Coronaviruses are microbes having the form of sphere that contain a single-stranded
RNA molecule. They have a shell with rare spikes or bunches that resemble a crown.
Hence is the name - coronavirus.
[SYLWAN., 164(5)]. ISI Indexed,May 2020 113
This preprint research paper has not been peer reviewed. Electronic copy available at: https://ssrn.com/abstract=3649813
Once inside the cell, coronaviruses begin to multiply in the cytoplasm, settle on
immunocompetent cells, using them as a carrier, and quickly dissipate throughout the
body. Coronaviruses mainly suppress the immune system, after which it stops
recognizing the infection and fighting with it. However, these viruses are unstable to
external factors and break down instantly at t0 56 degrees.
The predominant form of infection that provokes coronavirus is respiratory. The
intestinal variety is much less common, mainly in children. ARVI, which occurs under
the influence of the virus, in most cases lasts for several days and ends with a complete
recovery of the patient. However, in some cases, it can take the form of atypical
pneumonia or severe acute respiratory syndrome. This pathology is characterized by a
high frequency of fatal outcomes (38%), as it is accompanied by acute respiratory
failure. Coronavirus infection is widespread and is recorded throughout the year with
peaks in winter and early spring when its epidemic significance ranges from 15.0% to
33.7%. Children are 5-7 times more likely to be ill than adults. The infection is spread
by air-drop, fecal-oral and contact routes. The source of infection is patients with a
clinically pronounced or erased form of the disease.12
A problem with this study is the lack of information about this infection. The
coronavirus itself was recorded under the USSR, but its manifestation was weaker than
the current COVID-19. Therefore, more of the existing information is not confirmed by
100%, which causes many rumors.
The disadvantage of the study is that the infection process is not yet complete,
we are only at the peak of infection, so until the spread of coronavirus infection is
complete, it will not be possible to find out what impact COVID-19 will have on the
economy of countries.
The value of research for a specific audience. For example, for an ordinary,
average person, this does not matter, the impact on the economy will not affect them
particularly, but for higher-ranking people, for example, the founders of small and
medium-sized businesses, as well as the people at the head of each country it will be of
great importance.
The purpose of this work is to study the material about coronavirus, in particular
COVID-19, as well as to study and analyze as many sources as possible to find more
reliable information.
1. Methodology
The following scientific methods were used in writing this work:
a. The analogy method. It was used to draw attention to the current situation in
the world, as well as to the economies of countries and employment of the population.
b. The method of the literature’s analysis. It helped to find the right literature,
articles and reports on coronavirus.
c. The method of observation. This method was used to collect statistics about
the coronavirus itself, as well as its impact on both the economy of countries and on the
1
Human coronavirus: history of discovery, species, epidemiology,
https://ria.ru/20200121/1563668949.html
2
Human coronavirus: forms, symptoms, treatment approaches,
http://agdp1.ru/about/news/5862/
people’s lives. d. The method of conversations/interview. This method was used in
the study of interviews and news about coronavirus.
2. The Historical View on the Development of Coronavirus

Coronavirus has become a major challenge to the globalization after the collapse
of the Soviet Union. First, the 760-million-strong China, which is equivalent to 1/10 of
the land population, switched to a closed regime, and recently, Donald trump himself
announced the closure of borders. It turns out that the European Union, which was
reduced last year, remains the only Bastion of pure globalism, according to George
Soros, on the planet.
And it's not about COVID-19 itself. The epidemic has consolidated and
accelerated the geopolitical processes that began not today. China leading trade wars,
Putin's Russia annexing Crimea, Brexit and trump's isolationist populism are all links in
the same chain. In the face of a great threat, events begin to develop faster. The societies
that are the most open in Soros ' terminology are the least equipped to respond
adequately to the pandemic.
In this case, those states with the largest reserves of renewable natural resources
will take the strongest position, and gold may again become the most reliable currency
in the coming decades.
The outbreak of the disease in South Korea - the largest outside the Middle East
- began in May 2015. There were 2.6 thousand people under house quarantine. About
2,000 people have already been quarantined.
More than 1.3 thousand laboratory-confirmed infections have been reported
worldwide since September 2012, including more than 460 deaths, according to the
World Health Organization (WHO).
3. Economic Impact of COVID-19

This note is designed to introduce economists to the simple Sir Progression
Model COVID-19 in the United States over the next 12-18 months. The SIR model is
the Markov model of the epidemic's spread in a population in which the entire
population is divided into categories of disease-susceptible (pits), actively infected
disease (I), recovered (or deceased), and no longer contagious (R). How the epidemic
develops over time is determined by the pace of transition between the three States.
This model allows for quantitative statements regarding the trade-off between
the severity and timing of disease suppression through social distance and disease
progression in the population. Examples of this model's application are given. Special
attention is paid to the question of the fact if and when the proportion of active
infections among the population exceeds 1% (and at this stage the health system is
projected to be seriously undermined) and 10% (which may lead to a serious shortage of
personnel for the main financial and economic infrastructure), as well as the combined
burden of illness over an 18-month period.
The COVID-19 epidemic will have a long-term impact on the world economy,
but the European Union will continue to take steps to combat the consequences of the
pandemic, according to a statement by EU leaders after a videoconference discussing
the situation. "The pandemic COVID-19 affects people and societies around the world
and will have a lasting impact on the global economy and trade," the statement said. EU
leaders in this regard asked the Eurogroup, a council of eurozone finance ministers that
also meets in an expanded format with the participation of ministers from all EU
countries, to submit proposals to them to combat the socio-economic consequences of
the pandemic in the next two weeks. The summit also noted the need to create a strategy
to overcome the current situation. "We must begin to prepare the measures necessary to
return to the normal functioning of our societies and economies and to sustainable
growth," the statement reads. European Commission President Ursula von der Leien
noted a certain dilemma - it is important to remove measures against the spread of
COVID-19 in the EU not too early, but also not too late, because they seriously affect
the economy. Against the background of the pandemic of the new coronavirus, a
number of countries have closed their borders, reduced transport links, "slow" social life
through quarantine measures - closing public places, cancelling events. EU leaders
noted the need for a "coordinated exit strategy" and a "comprehensive recovery plan,"
as well as "unprecedented investment." The Summit asked the heads of the EC and the
European Council to begin work on a plan of action in this direction. The UN
Department of Economic and Social Affairs predicts that this year, due to the
coronavirus pandemic, the global economy, instead of the expected 2,5% could show a
decline of 0.9% percent. This figure may increase if restrictions on economic activity
continue to apply in the third quarter and incomes decline. During the 2009 financial
crisis, the economy shrank by 1.7%. As noted in the Department 's report, restrictions
on the movement of people and border closures in Europe and North America have
negatively affected the service sector, especially retail, hospitality, entertainment and
transport. The decline in consumer demand in the EU and the US will reduce imports
from developing countries, which will also suffer from global production cuts,
disruption of trade chains and reduced investment. It will also be very difficult for poor
countries living at the expense of tourism. At the same time, the severity of the
economic consequences will depend on "how long the constraints in the major
economies will remain, and on the scale and effectiveness of fiscal measures."
According to the authors, it will be possible to reduce the probability of a deep
recession "through investments in health care and financial support for population
groups, especially those affected by the pandemic."34
3.1 Impact on Production

The coronavirus pandemic has a very negative impact on electronics production and
supply. It is understood that the pandemic began in China, where the bulk of electronics
and its components are produced. As early as the end of January, news began to appear
about the suspension of various factories and factories for the production of
semiconductor products, various electronic components and consumer devices. For
example, Foxconn factories, which also produced iPhones and other smartphones, were
temporarily closed. Some Samsung factories, China's newly opened Tesla factory and
many other businesses have also suspended operations. And these are manufacturers not
only of ready-made devices, but also of various electronic components for them, the
same semiconductors, resistors, capacitors, etc. This caused a shortage of even basic
3
Coronavirus doesn't just kill people: how the pandemic affects electronics manufacturers,
https://overclockers.ru/blog/SoziNet/show/35324/koronavirus-ubivaet-ne-tolko-ljudej-kak-pandemiya-
vliyaet-na-proizvoditelej-elektroniki
4
COVID-19 will have a long-term impact on the world economy, Rambler reports.
https://news.rambler.ru/europe/43915625/?utm_content=news_media&utm_medium=read_more&utm_so
urce=copylink
components, and as a result, even greater difficulties in the production of household and
industrial electronics.
Many large companies that do not have their own production capacity but use
OEM services, such as Apple, Microsoft, and Google, have begun to transfer orders
outside China. This made it possible to compensate to some extent for the closure of
Chinese production facilities, but did not completely eliminate the difficulties. The fact
is that significant problems have also arisen in supply chains. As it is known, the parts
for the production of electronics are not enough to produce them; they must also be
delivered to assembly lines. The logistics problem arose in China due to the closure of
individual regions. Later, the outer borders, including the maritime borders, were
closed. As a result, even operating factories in countries not as badly affected by
coronavirus as China had to cut output because producing it was simply nothing to do.
Almost all major manufacturers of computers, smartphones and other consumer
electronics report problems in their supply chains. A fairly striking example here is
Apple, which, as has been repeatedly reported, is experiencing significant supply
difficulties. It got to the point that the company was forced to restrict sales of its devices
for a while, but at the moment, again, everyone can buy as many iPhones or iPads as
they want.
In addition, Apple cancelled the presentation of the new budget iPhone, which
was to take place at the end of March. The company decided not to introduce the
smartphone until it was sure that it could produce it normally and fully meet the
demand. Even in the current situation, Apple has been frustrated by its policy of
producing about as many devices as it sells. That is, the company did not have
significant reserves, and what was sold off quickly enough not to miss houses in
quarantine. This was another reason for imposing restrictions on the number of devices
sold in one hand. In addition, Apple thus opposed speculators.
Fortunately for manufacturers, at the moment the main wave of coronavirus in
China has already passed, and the Chinese government is easing the quarantine
measures. As a result, production resumes and supply chains begin to recover. NVIDIA,
for example, recently said supply chains would recover 70-80 percent by the end of the
current quarter. That is, it will take much longer to fully recover, analysts estimate-up to
9 months, but things are still improving. Analysts predict a reduction in the supply of
almost all consumer electronics. TVs and monitors are expected to drop by 8.6% and
9.7% respectively in the first quarter. Smartphone deliveries will fall by more than 10%.
And computer manufacturers and laptops in particular, will suffer the most. Analysts
predict that their deliveries will decrease by more than 20% in the first quarter. And
judging by how the situation is developing, the situation may be even worse at the
beginning of the second quarter.
Production and delivery problems affected not only current products, but also
devices that had not yet been released. For example, the delay of Intel Comet Lake-S
processors was clearly affected, among other things, by the coronavirus situation.
Experts also fear that Microsoft and Sony may be forced to postpone the release of their
next-generation consoles.
3.2 Impact on the Employment

A new, invisible "actor" - coronavirus - appeared on the labor market. In a
matter of days, it has significantly changed the economies of all leading countries.
Instead of cooperation-a necessary component of economic activity-it has forced
everyone to "social distance," which leads to recession and threatens to destroy millions
of workers. Unfortunately, there is no alternative to such treatment, and we need to
think about how to mitigate its economic consequences.
Coronavirus didn 't come forever, and now he 's gone. Many experts have
already begun to actively discuss what life after coronavirus can look like. But there are
long-term prospects, short-term and medium-term. The strategy and tactics of getting
out of mass self-isolation now require detailed reflection. Although we will be able to
fully assess the impact only after the quarantine is completed, many problems are
already clear today, and appropriate actions need to be taken today.
The crisis is spreading unevenly across regions and activities. Some may even
win something, such as a food delivery retailer or technology companies that provide
remote work. However, there are very few of them. All types of commercial services
(non-food trade, hotels and restaurants, passenger transport, recreation, culture, Sports,
Tourism, etc.) are at an obvious risk of temporary stoppage due to self-isolation of
consumers. They account for about a third part of all employed people in the country as
a whole. But some industries and construction along the entire chain will take a heavy
hit.
The unconventional nature of this crisis requires unconventional measures. The
main task in the labour market is to enable those who have lost their jobs and incomes
to survive in this crisis and then quickly return to paid work. Preferably the one job that
was before the crisis. We cannot allow the mass destruction of the specific human
capital that has been created by years of labor and investment. A rapid further recovery
is possible only on the basis of existing physical and human capital.
This means that we must maintain the potential of the existing business at all
costs so that it can return to normal operation once the epidemiological restrictions are
lifted. If this business disappears/goes bankrupt/is eliminated, the subsequent recovery
will be much more difficult, and then mass and long-term unemployment can become a
sad and long-term reality. So by helping businesses, we help people as well.
Many people lose their jobs because of coronavirus: companies cut and fire
employees because they have nothing to pay. Not everyone can work in conditions of
mass self-isolation. Someone is asked to go on unpaid leave - it is also a loss of
earnings. Finding a new job can not be easy, especially if the profession involves
contact with people. If offices and cafes are closed, office managers or waiters are not
needed. The State is aware of this and is introducing additional measures to support the
unemployed. The main measure is to increase the maximum amount of unemployment
benefit to the minimum wage: from 8,000 rubles to 12,130 rubles. You can now also
apply for these benefits remotely.56
The Department of Labor has come up with a way to support employees who
face dismissal and those who recently became unemployed because of coronavirus. The
International Labour Organization predicts two events concerning employment and
unemployment amid the spread of coronavirus. This is reported by 3600 TV channel.
So, the first scenario assumes that about 5.3 million people will become
unemployed, and the second – that four times as many people will be out of work.
5
Imports are affected by coronavirus: domestic producers are holding on to stocks of Chinese raw
materials, https://radiovesti.ru/brand/60944/episode/2251963/
6
The expert assessed the impact of coronavirus on grain exports from Russia,
https://ria.ru/20200312/1568471716.html
The Ministry of labor has come up with a way to support those who were left out
of work during the coronavirus pandemic. First of all, those who remain unemployed
should be given the opportunity to improve their skills. In addition, funds will be
allocated from the government's reserve Fund for anti-crisis measures.
3.3 The Impact on Exports

A negative impact of the new coronavirus on coal exports from Russia is not
excluded, but there is no drop in deliveries in January – February. This was reported to
journalists by Deputy Minister of energy of the Russian Federation Anatoly Yanovsky.
"Now it is difficult to talk about the impact of (coronavirus on coal exports-approx.
TASS), it will, of course. Judging by the numbers, it doesn't appear. Coronavirus leads
to a decrease in industrial production and, as a result, to a decrease in demand for all
types of energy resources," he said, noting that "no one knows how quickly this will
affect the market." “The export grows. Following the results of two months we do not
see a single fall, the Deputy Minister concluded.
According to the Central dispatching Department of the fuel and energy complex
(FEC), coal production in Russia in January – February 2020 decreased by 7.5%
compared to the same period last year and amounted to 66.54 million tons, while
exports decreased by 14% to 25.22 million tons. According to the Federal customs
service (FCS), in January 2020, coal exports increased by 13.4% compared to the
previous year – to 12.53 million tons. The coronavirus pandemic may affect the timing
of deliveries of Russian grain to other countries, but the demand for agricultural
products will remain, so Russia's position as one of the largest grain exporters will not
suffer, Igor Pavensky, Director of the strategic marketing Department of Rusagrotrans,
told RIA “Novosti”.
The World Health Organization declared the outbreak of the new COVID-19 a
pandemic on March 11. Worldwide, about 120,000 people have been infected in more
than 100 countries. Most of them recovered, but more than 4,000 have already died. "I
think that from the point of view of the discussion, the market space will not be
affected, because the demand for food products, such as grain and, in particular, flour
wheat, which is the raw material for the production of significant quantities of food and
is consumed worldwide, will be the last position, the consumption of which will begin
to decline," - Pavensky said. "In the case of a pandemic, due to restrictions, delivery
times can be extended to countries where the disease is most common, primarily to
Italy, Iran, South Korea and China, which, with the exception of Iran, do not take any
significant share in our exports (grain). If the ship remains in the port of shipment or
unloading longer, they will not buy less, the expert added. He also noted that after a
certain pause at the beginning of the working week, against the background of the
weakening of the ruble, purchases from exporters intensified, and purchase prices in
ports increased sharply - by 400-700 rubles per ton, despite the fall of external dollar
prices. The expert recalled that a month ago prices were at 220 dollars (terms of
delivery - FOB) and higher, and now they have fallen to 206-207 dollars. Meanwhile,
the initial and most important reason for the price decline was the expected good
harvest. "As a rule, the weakening of the ruble leads to an increase in exports, but now
deliveries are limited by the end of the season and expectations of a new harvest....
Therefore, Russia will not suffer, but may win in terms of influence on the ruble
exchange rate, "- said Pavenskiy. He explained that in the second half of the season the
largest volumes of supplies usually fall on March and April - the last period, and at the
end of the season, in May and June, world demand falls, as there is a new harvest ahead.
Rusagrotrans expects that in 2019-2020 the Russian Federation will export 42.8 million
tons of grain (including the EAEU), including 32.7 million tons of wheat. . At the same
time in the rest of the season (March-June) more can be exported than in the comparable
period last year: about 1 million tons of grain (9.4 million tons) and 0.8 million tons of
wheat (6.5 million tons), in particular, in March-April grain deliveries can amount to 3
million tons and 2.5 million tons respectively. Grain exports from the Russian
Federation in 2018-2019 agricultural year (from July 1, 2018 to June 30, 2019)
amounted to 43.3 million tons, including wheat-35.2 million tons. According to the
results of the last agricultural year, Russia retained the first place in the world in terms
of wheat supplies, overtaking both the United States and the European Union, and can
become a leader for the third time in a row, experts did not exclude earlier. The Ministry
of agriculture of Russia expects that in the 2019-2020 marketing year (from July 1,
2019 to June 30, 2020), grain exports from Russia will amount to 45 million tons,
including 36 million tons of wheat. The REC emphasizes that they are stepping up work
with existing clients and are ready to expand it in connection with the changing
situation. Russian exporters can count on the assistance of the Russian export center
(REC) in minimizing losses caused by changes in the global economy due to the
coronavirus pandemic, as well as in taking advantage of the opportunities created by the
new economic situation. At the same time, the REC clarifies that state support measures
will not decrease, on the contrary, the effectiveness of financial products will only
increase. The REC has at its disposal more than 100 financial and non-financial
instruments to support exports. They are intended for both large companies and small
and medium-sized business exporters. Support measures include financing deliveries,
providing foreign trade guarantees, contract insurance, searching for partners abroad,
exhibition activities, business missions, training programs of the REC export school,
Analytics and research for exporters, assistance in certification and patenting. An
outbreak of coronavirus was recorded in China at the end of 2019. In March, the World
Health Organization announced a pandemic of the disease. Coronavirus has created
significant problems for global trade, including for Russian suppliers. Cargo
transportation has become more complicated, and the epidemic has affected contacts
with foreign business partners. Hundreds of exhibitions and forums have been canceled
or moved around the world for security reasons. Russian exporters were to participate in
a number of them with the support of the REC. In response to the situation with the
spread of coronavirus, the RAC changed the format of business missions for exporters
and put them to online mode. A video conferencing pilot project has been launched in
the Far East. The Russian Agency for export credit and investment insurance (EXIAR)
and Roseximbank are integrated into the REC group. The REC is part of VEB. Group of
the Russian Federation.7 8
3.4 The impact on Imports

Coronavirus can harm domestic business. Pharmacists and chemical companies
say they lack Chinese raw materials. Importers face fines for disrupting supplies - the
7
Imports hit by coronavirus: domestic producers hold on to Chinese raw materials,
https://radiovesti.ru/brand/60944/episode/2251963/
8
Expert assessed the impact of coronavirus on grain exports from Russia,
https://ria.ru/20200312/1568471716.html
products have not yet arrived. Experts believe that so far there are no problems. Many
companies have stored raw materials for the future. By the time stocks run out, Chinese
factories must already be operating. The columnist "Vesti FM" Pavel Anisimov will
continue the topic.
Manufacturers are afraid of a shortage of raw materials. For example, 8 out of 10
domestic tablets are made on Chinese substances. The billet is cleaned, fillers are added
and Packed under the brand of Russian pharmaceutical plants. This list includes life-
saving medications, from diabetes to HIV, as well as "just in case" pills. The leaders of
medicines on Chinese raw materials are antibiotics, paracetamol, ascorbic acid and
analgin. There are reserves for these positions for months ahead, says Irina Bulygina, a
leading expert on The Russian pharmaceutical market. Our manufacturers buy a lot at
the beginning of January, because then the middle Kingdom leaves for the New Year
holidays.
Bulygina: "factories do not work "from the wheels". Everyone has a stock of
substances, because they plan production for a year. And the more lot you buy, the
greater the discount on raw materials. Therefore, we can’t say that everything will end
tomorrow, because China does not deliver. It is possible that there will be interruptions
with some expensive substances that are purchased not in tons, but in kilograms, and are
produced only in China."
India, the main producer of cheap generics, was left without Chinese raw
materials. Authorities recently banned the removal of antipyretic agents, pressure pills,
headaches, antibiotics and vitamins. As a result, prices in the country for simple
paracetamol jumped one and a half times, and for popular antibiotics - almost twice.
Russia has also banned the export of some medicines. In addition, the
government wants "to freeze" pharmacy prices for cold and flu medicines during the
epidemic. Fear of coronavirus has already "knocked" almost all medical masks out of
pharmacies. As it turned out, many of them were brought from China. After the masks,
the hype switched to hand disinfectants and other disinfectants. Their sales have
increased significantly and some sellers are running out of goods.
It 's not just medical companies that suffer from coronavirus. Then there 's
household chemistry. Components for deodorants, dishes and paints are imported from
China by millions of tons worth billions of dollars. For example, every second plastic
bottle we have is made of Chinese terephthalic acid raw material. Trains with building
materials, herbicides, PVC film went to us from China - it is needed in electricity and
construction. Russian exports to China are also suffering from coronavirus, with
supplies of ore, grain and wood reduced by a third from pre-carantine volumes.
Large fines will have to be paid for disrupting deliveries. This point is usually
included in every agreement. Suppliers and buyers understand that factories and borders
closed due to the virus are force majeure, and they are reviewing contracts, says Sergey
Elin, head of the audit and consulting company AIP. Some customers do not take the
product under the pretext of a virus because of low demand and falling prices. In such
cases, the Chamber of Commerce and industry needs in confirming force majeure.
If the virus is not stopped, you will have to re-negotiate with customers, search
for new markets and open your own production. The dangerous infection makes it clear
that much can and should be done on its own, creating jobs.
Although Russia's dependence on food supplies from China is not as great,
China is an important exporter of a number of food and agricultural commodities. For
example, China supplies significant volumes of vegetables (the share of Chinese
products in imports to Russia is 22.4%), fruit and vegetable products (16.5%), fish and
crustaceans (14.9%), meat and fish products (13.3%). In this regard, the need to develop
local agricultural production, as well as investment in greenhouses, warehouses and
other infrastructure and logistics capacities, becomes a pressing issue.
"The development of a network of wholesale distribution centers in Russia can
partially help solve this problem. The creation of modern orcs can provide the country
with conditions for long-term storage of products, so that local problems with the
supply of certain types of products do not affect the supply and do not encourage
wholesalers to speculate, "- said Bereznyuk.910
3.5 State support for producers during the quarantine regime

Japan. Here, the coronavirus does not spread as quickly as in many European
countries or the United States. However, Tokyo announced a strong program to support
the economy in the Wake of the epidemic. At first it was about $ 300 billion, but in the
end the government decided to allocate 108 trillion yen, or almost $ 990 billion. This is
about twice as much as during the 2008 financial crisis, and overall it is the largest
nominal economic aid package in the country's history. If we talk about helping
businesses, especially small and medium-sized businesses, this money will be used to
issue interest-free loans. Direct financial support is also provided to the most affected
industries, such as tourism or aviation.
Germany. The Germans are experiencing the most difficult period in their
history since the end of World War II - as Federal Chancellor Angela Merkel said.
Thus, her country had allocated 1.4 trillion euros to overcome the economic
consequences of the coronavirus epidemic, of which 400 billion were state guarantees
on interest-free loans for business, and another 156 billion were direct assistance to
small and medium-sized businesses. Moreover, it is enough for the German to send only
one request, and the next day the money is credited to the account. Another 50 billion
euros will be allocated to support self-employed citizens as well as micro-enterprises. A
separate bill deals with financial assistance to hospitals. In addition, the state will
allocate 100 billion euros as a reserve for itself - in case if it has to buy back shares of
firms on the verge of bankruptcy to save business and jobs. Finally, another 100 billion
euros will be allocated to the German State Development Bank of KfW for its special
programs. France. Here, the amount of financial assistance is 345 billion euros - much
more modest than in richer Germany and Japan. Much of that money will go to
government guarantees, allowing companies to borrow at low interest rates, even if
there are high bankruptcy risks. Small and medium-sized businesses are allowed to
temporarily avoid paying rent and utilities. At their request, a separate direct cash aid
fund was set up for entrepreneurs, and companies can also reduce employees 'working
hours without layoffs or pay cuts, which would previously be a violation of strict French
labour law (almost socialist). Great Britain. The British government is allocating a bit
more funds to its businesses and citizens affected by the crisis. Until Prime Minister
Boris Johnson himself found himself with the coronavirus first quarantined and then in
hospital, he managed to distribute more than £350 billion. This money, in particular,
will be used to guarantee loans for small businesses, direct cash subsidies to small
9
Imports hit by coronavirus: domestic producers hold on to Chinese raw materials,
https://radiovesti.ru/brand/60944/episode/2251963/
10
Expert assessed the impact of coronavirus on grain exports from Russia,
https://ria.ru/20200312/1568471716.html
businesses, subsidies for sick leave for employees of affected enterprises, which were
previously paid by the employer, and, finally, to cover the budget deficit that will arise
due to partial cancellation of taxes for businesses. East of the EU. Roughly equal
amounts - 40 billion euros in their national currencies - were allocated to combat the
effects of coronavirus Poland and the Czech Republic. At the beginning of the crisis,
both the Polish zloty and the Czech krone fell, although not as much as the Russian
ruble, by about 10%. This money in both countries will be used for interest-free loans
and reimbursement of fallen taxes. In the Czech Republic, private entrepreneurs may
also not pay all social fees for six months. If the business owner has a child under the
age of 13 who has stopped going to school or kindergarten because of coronavirus and
is forced to sit with him at home, he will receive the equivalent of 50,000 rubles per
month. An ordinary employee can count on 60% of his salary. In addition, small
entrepreneurs will receive another 25 thousand kroner (more than 80 thousand rubles) as
a one-time assistance - only on application. Not the next day, though, as in Germany,
but about a month later. Certain amounts will also be used to support domestic large
businesses and exporters. USA. Americans spend the most in the world to help those
affected by COVID-19.
They even allocated a separate line in the package of anti-crisis measures of 47

billion dollars actually to fight coronavirus. Overall, the U.S. state plans to spend more
than $2.2 trillion to overcome the consequences of the epidemic. Of these, a quarter is
direct assistance to citizens, and another 367 billion will be spent on developing a
program to support small businesses and the program itself. Another 500 billion will be
allocated to finance the affected sectors of the economy, support cities and the States,
and finally, expanded unemployment insurance will cost the US $250 billion.1112
4. Discussion
Studies have shown that the coronavirus pandemic has reached the absolute majority of
countries in the world. Currently, according to WHO, more than 2.5 million people are
exposed to an infection, 175 thousand of whom died and about 700 thousand were
cured. The largest number of infected and victims were recorded in the United States. In
Spain, to date, more than two hundred thousand infections have been noted; more than
21 thousand patients have died. The coronavirus was discovered a long time ago, but it
has mutated, and this led to the outbreak at the present time. It has put heavy pressure
on the economies of many countries, and import and export rates have declined, but
scientists continue to study COVID-19. Research has also shown that the epidemic has
affected the production of many goods; even the largest companies suspended the
production of their products. A lot of people around the world were left unemployed,
someone was reduced, someone received cut wages, and only a small percentage was
left unchanged.
Conclusion
11
How to support citizens of governments of other countries during quarantine,
https://pikabu.ru/story/kak_podderzhivayut_grazhdan_pravitelstva_drugikh_stran_vo_vremya_karantina_
7358014
12
Russian business asks for a subsidy to pay 2/3 of the average monthly earnings of employees, and for
sole proprietors-a monthly allowance and exemption from payment of contributions, https://stolica-
s.su/news/economics/257710
Summing up the above, it should be emphasized that this study is relevant to a
specific audience, such as founders of small and medium-sized businesses, as well as
people in charge of each country. A number of articles examining the problem describe
the spread of coronavirus in the world, as well as forecasts of the impact of the
pandemic on the population and economy; discuss the economic impact of the crisis
COVID-19 on the industries and countries, economies of which will be affected. They
also provide a rough estimate of the potential global economic costs of COVID-19
under different scenarios.
The epidemic has consolidated and accelerated geopolitical processes. Gold is
expected to be the most reliable currency again in the coming decades.
The pandemic COVID-19 affects people and societies around the world and will
have a lasting impact on the global economy and trade. The severity of the economic
impact will depend on "how long the constraints in the major economies will persist,
and on the scale and effectiveness of fiscal measures."
Many people lose their jobs because of coronavirus: companies cut and fire
employees because they have nothing to pay. The pandemic has put heavy pressure on
the economies of many countries, and import and export rates have declined, but
scientists continue to explore
COVID-19. Government support for producers during the quarantine regime
becomes crucial.
Reference
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Economics and Finance, The University of Hong Kong.
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30. Imports are affected by coronavirus: domestic producers are holding on to
stocks of Chinese raw materials, https://radiovesti.ru/brand/60944/episode/2251963/
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https://ria.ru/20200312/1568471716.html
32. Imports hit by coronavirus: domestic producers hold on to Chinese raw
33. Expert assessed the impact of coronavirus on grain exports from Russia,
https://ria.ru/20200312/1568471716.html
34. Imports hit by coronavirus: domestic producers hold on to Chinese raw
35. Expert assessed the impact of coronavirus on grain exports from Russia,
https://ria.ru/20200312/1568471716.html
36. How to support citizens of governments of other countries during quarantine,
https://pikabu.ru/story/kak_podderzhivayut_grazhdan_pravitelstva_drugikh_stran_vo_v
remya_karantina_7358014
37. Russian business asks for a subsidy to pay 2/3 of the average monthly
earnings of employees, and for sole proprietors-a monthly allowance and exemption
from payment of contributions, https://stolica-s.su/news/economics/257710

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ECONOMIC IMPACT OF COVID-19

[SYLWAN., 164(5)]. ISI Indexed,May 2020 113

[SYLWAN., 164(5)]. ISI Indexed,May 2020 114

2. The Historical View on the Development of Coronavirus

3. Economic Impact of COVID-19

[SYLWAN., 164(5)]. ISI Indexed,May 2020 115

3.1 Impact on Production

3.2 Impact on the Employment

[SYLWAN., 164(5)]. ISI Indexed,May 2020 117

3.3 The Impact on Exports

[SYLWAN., 164(5)]. ISI Indexed,May 2020 119

3.4 The impact on Imports

[SYLWAN., 164(5)]. ISI Indexed,May 2020 121

3.5 State support for producers during the quarantine regime

They even allocated a separate line in the package of anti-crisis measures of 47

[SYLWAN., 164(5)]. ISI Indexed,May 2020 124

[SYLWAN., 164(5)]. ISI Indexed,May 2020 125

[SYLWAN., 164(5)]. ISI Indexed,May 2020 126

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