VictorBuzz

Corona pandemic is affecting entire world very badly. Human life is suffering as well as global economy.
World economy is seeing its worst phase and it will create short term effects as well as long term
effects. Predictions are made about 5.2% contraction in world GDP 2020. Governments are trying their
best to handle the situation but as we know that a pandemic on this level is first experience for our
generation, it is getting very difficult to cope up with the situation. The pandemic has severe long lasting
impacts such as investment will go down, jobs will be reduced and people will lost their jobs, schooling is
going through very bad phase and the global trades are fragmented. Developed countries on some level
are coping with the situation but for the developing countries and emerging markets it is going to be
very tough to ensure complete public health, jobs, stabilizing economy and again run the businesses
efficiently.

The history is going to be re written in 2020 as the per capita income in this recession time is contracted
in the largest fraction globally since 1870. Advanced economies will be going to be contracted by 7% and
the developing countries like India the GDP is going into negative as we have seen the GDP numbers for
April-June quarter. This shows the need for urgent action to make it all even because otherwise it will be
very critical to handle. Millions of people are losing their jobs and they don’t have any other option. If
these numbers are going to continue then the recovery will be very difficult.

Every region is subject to downgrades. East Asia and the Pacific will go down by 0.5%. South Asia is
contracting by 2.7%, Sub Saharan Africa by 2.8%, Middle East and North America is contracting b 4.2%,
Europe and Central Asia is by 4.7%. This contraction in economy is showing the reverse path of
development and growth in all these years which means the countries are going more than 10 years
backwards. The contraction is due to complete lockdown in countries for months. Economy was
stopped, global trades were not working, tourism is completely destroyed as the restrictions were made
to travel into other countries, exporters of energy and industrial commodities will be particularly hit. In
order to handle the situation the oil demands and oil prices were collapsed. Demand for metals and
transport related such as rubber, platinum which were used in vehicle parts has also reduced.
Agriculture markets were well supplied globally but trade restrictions and supply chain disruptions ca be
a main issue to create problem in agriculture supply also.

Some of the forecasts about the future says that pandemic is going back in such a way that domestic
mitigation measures can be pushed up by midyear in one of the advanced economies and later in
developing countries also, in the second half of this year the widespread financial crisis are avoided and
this forecast suggests the growth and reviving of down falling economy of the world to 4.2% in 2021.
Businesses are finding it very hard to pull out the money for debts and that’s why many businesses are
not expanding it, rather than they are trying to save it in such a way that after pandemic they could
again lift it up, but the scenario is different because global growth could shrink by 8% in 2020 and if you
are not pulling it up right now then it is going to be sink deep down. Well we can predict the recession
after the pandemic because the speed at which the pandemic has taken over the world economy it will
be lifted over with a much lower speed. The sharp rate of global growth going down shows that there is
an urgent need to make plans and strategies for present as well as for future also.

The global recession will take economies with important informal sectors that make up almost one third
of the GDP and about 70% of the employment in developing countries and in emerging markets. Policies
should be making to support the businesses and to provide jobs to these workers. We actually look
beyond the near-term results and future to what could be the repercussions of the deep global
recession: potential output which means the level of output an economy can achieve at the full capacity
and full employment which means labor productivity. The efforts which were made to contain COVID-19
in developing and low income economies with limited health care facility are going to be in deep
recession and it will be for a longer period of time.

There has been a historic collapse in the demand of oil and oil prices. Low oil prices are temporary initial
support to growth once the restrictions to economic activities pulled up. Even after the demand
recovers there will be adverse impacts on energy exporters may outweigh any kind of benefits to activity
in energy importers. The recent oil price plunge might provide the momentum for further situations to
undertake energy subsidy reforms and once the immediate health crisis will be over they can surely
deepen them. Right now the most important priority for policymakers in the health crisis is to contain
short term economic damage. But for the longer term, authorities need to take some of the crucial steps
and reform programs to improve these drivers of economy to be lifted up post pandemic.

Well, we cannot change the things which has happened and are going to be happened but we can surely
reduce its impacts. And now all the countries are in the same situation. The pandemic will left an irremovable scar on the countries but we need to cure this scar so that the things which has been
destroyed can regain its shape and the people can again live a normal life. Because at the end if the
things are reshaped or recovered then surely the car would not be remembered. But the government
has to work in full pace in order to recover from this crisis.