COVID-19 or coronavirus – that’s what the talk of the town is these days. Though everyone is positive with the view that “this too shall pass”, the effect of coronavirus pandemic is ubiquitous. Whether it is a steep down in foreign college students, a setback in mental & physical health of people or changes in livelihood, COVID-19 pandemic outbreak has bowled a major Googly in everyone’s life, thereby, drastically affecting the economy of the world. The impact of this cataclysm is on-going and not waning away anytime soon. Talking particularly about the economic consequences of COVID-19 pandemic, there is a lot to say, courtesy the fact that the economic impact of the outbreak is disruptive.
If the reports are to be believed, the world trade has declined for about 27% and the economic activity amidst the developed economies is further expected to shrink by 7% due to the hustle-bustle in the domestic demand, supply, trade, and finance. UNCTAD analysis has predicted that there will be a drop of $2-$3 trillion in investments from overseas in the next two years from the commodity-rich exporting countries.
Brief on Economic Consequences of the COVID-19 Pandemic Country-Wise
World Bank Group Vice President for Equitable Growth, Finance and Institutions, Ceyla, Pazarbasioglu, was quoted as saying,
“This is a deeply sobering outlook, with the crisis likely to leave long-lasting scars and pose major global challenges.”
He further added,
“Our first order of business is to address the global health and economic emergency. Beyond that, the global community must unite to find ways to rebuild as robust a recovery as possible to prevent more people from falling into poverty and unemployment.”
After almost 30 years of sustained growth, Australia dived into recession like crazy. With so much happening all over the globe with job damages, annihilated supply chains, demands thrashing, swelling debts, scattered industries such as tourism and hospitality, global education, etc., Australia was controlling the outbreak quite amiably, and then this happened.
Cut to the recent reports; COVID-19 affected Australia so much so that it has taken the sharpest dive since Great Depression-era of the 1930s. To let you all know; the economy of Australia shrank 7% in June, which happens to be the biggest contraction since 1959 that the government has recorded. According to the Statistics Bureau, “Gross domestic product plunged 7 per cent from the first three months of the year, the largest fall since records dating back to 1959.”
It won’t be wrong to say that COVID-19 pandemic has pushed the Indian economy into a tailspin. In addition to this, it has also brutally exposed and worsened existing vulnerabilities in the Indian economy. So much so that the latest report by Business Standard states that the economy of India might continue to face Covid-19 aftershocks till 2025. Due to the sudden nationwide lockdown, the economic activity came to a grinding halt with just a few essentials kept open; the rest of India’s $2.9 trillion economy remained shuttered in India. To an already decelerating economy, the lockdown in India impacted devastatingly.
The United States of America
Though the recovery and the vaccine are far away, COVID-19 economic effects on countries are still hitting hard. The US has witnessed one of the awful periods in its history, where it took an economic dip by 32.9%, which was recorded in July 2020. To talk about facts and numbers, the US unemployment rate sores up to 10.4% in June. The US, along with Canada and the UK, were in the -15 to -5 GDP Category in Q1. It was reported that there were more than 24% of job losses recorded in 2020. Having said that; all the economies are currently in their recovery phase!
A glance at the regional outlook!
- East Asia and Pacific: It is to be noted here that as per the reports, the growth in East Asia and Pacific is to plunge to 0.5%. This happens to be the lowest rate since 1967, reflecting disruptions caused by the pandemic.
- Europe and Central Asia: The economy of Europe and central Asia is predicted to diminish by 4.7%, along with recession occurring in nearly all countries.
- Latin America and the Caribbean: Due to the shocks stemming from the coronavirus outbreak, the economic activity has plunged by 7.2%.
- The Middle East and North Africa: Economic activity in the Middle East and North Africa is forecast to contract by 4.2% as a result of the pandemic and oil market developments.
- South Asia: As far as South Asia is concerned, the economic fall is predicted to contract 2.7% this year due to the affected mitigation measures that have to deter consumption and services activity.
- Sub-Saharan Africa: Economic activity in the region is on course to contract by 2.8% in 2020, the deepest on record.
Coronavirus Outbreak (COVID-19) Affects International Student
There is no denying the fact that the coronavirus outbreak (CIVID-19) has affected international students drastically. The pandemic has entirely disrupted the educational landscape for millions of university students all over the world, where international students have their share of tests. The multiple abrupt changes in education, along with the burden of the chronic disease of the outbreak have all-together hit many students’ mental health.
As per the latest survey, it is recorded that 65% of the students think that the pandemic will disrupt their studies. Living far from their families, they have a lot of things to ponder inclusive of visa and graduation status; optional practical training (OPT) opportunities being harder to obtain or cancelled; whether to go home or stay and so on.
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