Impact of the Covid-19 Pandemic on the Global Economy

Abstract

The phenomenon of economic crisis, of course, is unpleasant and has a destructive effect on the economic and social life of society. The article describes the causes and consequences of the major crises of the world economy of the XIX–XXI centuries. Among the most common causes of economic downturns is the excess of investment or consumption in one or more sectors of the economy. At the same time, the consequences of these economic downturns were the advanced development of industry and a new round of machine invention in the XIX century, the failure of the gold and currency standard in the XX century and the reorientation of financial flows from speculative assets to others, including raw materials and energy in the nineteenth century. The new global crisis unfolds new challenges for the world community and the search for new ways out of it. The current pandemic has been marked by a particularly rapid and large-scale decline in demand and oil prices as a result of the sudden cessation of economic activity. Demand and prices for other goods show a smaller decline, as they are less affected by quarantine measures. However, as the pandemic continues and the economic downturn deepens, it is also possible to reduce demand and prices for metals. The impact of the 2020 economic downturn on the economy may persist for a long time. The deepening crisis may reduce the demand for industrial goods. The global financial crisis of 2020, caused by the outbreak of influenza COVID-19 may lead to long-term changes in global commodity markets. Increased transportation costs. Opportunities for the national producer. Growth of substitution among goods. Changing consumer behavior. After, a large number of workers can continue to work remotely, which can reduce transportation costs and demand for fuel. Businesses can cut back on travel abroad and use video conferencing and other remote alternatives. As a result, environmental pollution will be reduce. Further changes in society's behavior may lead to a shift in the structure of demand for goods. Increasing teleworking can reduce the demand for travel and oil. Reducing oil consumption will also provide environmental benefits.

A Review of Digital Economy and Digital Economics

“…The COVID-19 pandemic caused most affected countries to lock down and encourage/enforce social distancing, which in turn led to serious stagnations in global travel, traditional trades, and services. This pandemic has had severe negative impacts on the global economy, causing loses of at least 4.5 percent of the gross domestic product (GDP) in 2020, which amounted to almost USD 3.94 trillion in lost economic output, and especially, a loss in business travel revenue of USD 810.7 billion (Szmigiera, 2021). However, the pandemic also created an opportunity for the development of online sectors such as online working, trading, education, telehealth, and services, among others.…”

Fiscal stimuli to improve energy efficiency under the economic recovery policy: an empirical approach of Ukraine

“…The international financial and economic crisis of [2008][2009], which arose as a result of the actions of banks in reaction to massive loan defaults, after its end led to the flow of capital from the markets of developed countries to countries with developing economies, as well as the reorientation of financial flows to raw materials and energy assets (Hrytsiuk and Sak 2021).…”

The Influence of Information Transparency on the Value Indicators of Securities During the Crisis, Taking Into Account the Time Horizon of Investment

“…In the process of making investment decisions, an important role is played by the analysis and forecasting of the volatility and profitability of shares in the long-term period. The basis for such an analysis is the transparency of market information, its availability, reliability, and prompt delivery to the user [1].…”