Impact Of the Coronavirus Pandemic On the Global Economy
To put this number into perspective, global GDP reached 84.54 trillion US dollars in 2020, which indicates that a decrease of 3.4% in economic growth would result in a loss of over two trillion US dollars in economic output.
The global economy, on the other hand, quickly overcame the initial shock, returning to positive growth levels in 2021. It reached 92.3 trillion dollars that year, and it is anticipated to continue growing in the years to come. However, Russia’s war in Ukraine since February 2022 and its impact on the global economy may impede economic expansion.
After the coronavirus outbreak, global stock markets also experienced significant declines, but they were able to quickly recover. On March 16, 2020, the Dow Jones reported its largest single-day loss ever, a loss of almost 3,000 points, surpassing the previous record of 2,300 points, which had been set just four days earlier.
Industries affected by the pandemic The COVID-19 pandemic had a variety of effects on various sectors and industries. The travel and tourism industry in particular suffered greatly from the global closure of borders and travel restrictions. The travel restrictions resulted in a significant drop in international flight numbers. On the other hand, as retailers were forced to close during the pandemic, an increasing number of people either chose to buy their non-essential goods online or were forced to do so. For instance, in both 2020 and 2021, Amazon’s net sales revenue set new records.
Country and local examination:
While the pandemic impacted the entire global economy, certain nations and regions were more severely affected than others. China was less affected. For instance, while the United Kingdom’s GDP growth rate decreased by nearly eight percent in the third quarter of 2020, China’s was nearly 5%. Nonetheless, by a similar quarter one year from now, it was expanding again by around seven percent. The GDP change in Asia ranged from minus 0.2% in East Asia to minus 7.7% in South Asia. There are numerous and intricate reasons for this, but East Asian nations’ relatively quick response to the pandemic in its early stages allowed them to ease restrictions quickly as numbers decreased.
Several governments implemented stimulus packages to support the national economies and alleviate unemployment in response to the economic decline. Indeed, the global GDP has increased since the initial decline in 2020, and it is anticipated that the GDPs of the G20 members will also rise by 2026, highlighting the beneficial effects of the stimulus packages and the relaxation of restrictions.