In the history of mankind, communicable diseases have always plagued us and a pandemic is the

worst-case scenario. While some infectious diseases were contained in its outbreak stage, others in
epidemic stages, a pandemic is where an infectious disease spreads around the globe. Like what we are
experiencing today, severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) or 2019 novel
coronavirus (2019-nCoV) ravage almost every country in the world. This paper is derived from in-depth
study of the effects of said disease to the global economy. It will present and discuss findings relative to
the said topic.

To begin with, Coronavirus disease (COVID-19) is an infectious disease caused by a newly

discovered coronavirus. The first human cases of COVID-19 were first reported by officials in Wuhan
City, China, in December 2019. In the first quarter of the year 2020, almost all countries imposed hard
lockdown to curb the further spread of the said disease. Economies took a hit as local and international
businesses alike, had to stop their operation because the death toll keeps on rising. In addition to the
substantial burden on the government by borrowing emergency funds for doling out aid and relief to
their citizens, it also caused a direct impact on generating income due to pre-mature deaths, workplace
absenteeism and reduction in productivity.

According to the data gathered as shown in Exhibit “A” and Exhibit “B” below, major blue-chip
stocks of each country took a hit as the number of cases increases.
 Another good example of one of the highest income generating industry of every nation that has
been hit severely and on the verge of collapse is the tourism industry. According to UNCTAD (United
Nations Conference on Trade and Development), Covid-19 could cost the world economy $4 Trillion by
the end of 2021. The industry crashed after countries closed their borders for nearly 2 to 3 quarters in
2020 and restricting travel for those who are yet to be vaccinated. Airlines are declaring bankruptcy
because they could no longer sustain support to their employees and the losses keeps on going. Larger
economic problems are expected if the situation will not improve in the near future.

Considering that we are still in the process of vaccinating everyone to stop the spread of the
disease and that it will still continue to hamper economic activities, we should still consider the
possibility that the negative effects brought by the pandemic that impacted our global economy heavily
will remain for a longer period of time. Governments should have a rough idea now on what measures
to take to contain the virus and negate future adverse effects.

References:

https://www.frontiersin.org/articles/10.3389/fpubh.2020.00241/full

https://www.who.int/health-topics/coronavirus#tab=tab_1

https://news.un.org/en/story/2021/06/1095052