The world is facing biggest pandemic of all times right now.
Corona virus or covid19 is the pandemic which has already
taken down millions of people and haunted the entire mankind to its core. But we have one more problem here which is going to be even more drastic, GLOBAL ECONOMY. COVID19 is not only affecting the health of people but also put an havoc on the global economy. One of the major reason for this is that this pandemic started from the nerve center of world economy, CHINA. China produces almost 28% percent of the goods in world and is also a giant consumer. It consumes around 50% of the all cement, coal and steel produced in the world which is more them consumed by America in last 50 years. The effect of this virus on the economy are extremely unknown and can only be predicted on the basis of some studies but it is very certain that this will make the entire world suffer more. World economy is estimated to suffer a decline of 2.5% to 2.6% decline in its GDP which is a substantial decline. The impacts of corona virus are double whammy as some of the countries in the world are well developed as America, Russia and so on while some are still developing so it is going to be very difficult for two. The stock exchange have already been fallen down tremendously. Sensex fall off 3000 points meanwhile which is a great no to matter. China’s GDP is estimated to be down by 4 to 5% this year which will be a great shock for such a developing country. This has laid great impact on the commodity exporter countries round the world. Covid19 is expected to create a trade war between the various countries in the world in order to save their own economies which will eventually lead to deglobalization causing lot more problems then earlier. Prices of vital commodities have already risen high which will make it more difficult for people to consume because there is already lack of supply and monetary liquidity in the economy, and at this critical time people cannot afford expensive face masks and hand sanitizers. The reason for all of this is basically lockdown all the world scale. The biggest economies have been shut down. There are lot of people in the world who are daily wage earner and worked in the factories and industries and had nothing planned for the future as they hadn’t expected such a havoc to cast upon them but now they have nothing to do and nothing to eat. There was already enough poverty in the world for the people to die of hunger and this virus have just made their lives more miserable. This lockdown of the entire economics system will cost a lot of jobs and yes creating more poverty in the entire world. What are we dealing here is a situation of dead end on both the sides. If we look upon saving the economy and lifting up the lockdown then it will lead to more spread of virus and if we don’t then people will die of hunger, poverty, unemployment. This could even lead to a new world war on the political fronts as many countries are holding china responsible for this entire situation saying that it was CHINA’S conspiracy againt the world while the china is trying to save itself by putting it as a sea food spread virus. It is being estimated that the world is going to face recession but will it be V shaped or U shaped or L shaped but we all go down together. The rates of crude oil is down to as low as $50 a barrel which is equal to nothing right now. The world supply chain is densely effected. America and Euro zones are expected to cost 1/3rd of their GDP to corona. The death tolls are rising high creating more and more pressure on the medical field and hospitals. American department of labour has recorded highest no. of unemployment till now. All these facts are quite scary but we have something to learn here.