Research on the Impact of COVID19 on Global Economy

Abstract

With the development of cosmopolitanization and globalization, dense population and large-scale population flow not only make the economy more integrated, but also make the spread of the plague more rapidly. The impact is unprecedented. The outbreak of COVID-19 has disrupted the Chinese economy and is spreading globally. The evolution of the disease and its economic impact is highly uncertain. Because of its high infectivity, high mortality and incubation period, the main preventive measures are to control social distance and isolation, which makes many economic activities impossible. Global GDP will fall by as much as 3%, while developing countries will be the hardest hit, as much as 4% on average, but some were more than 6.5% and world merchandise trade will plummet by 13% in 2020 due to the COVID-19 pandemic. This paper analyzes the macro economic impact of new coronavirus on the world GDP, merchandise trade (taking China as an example with other countries), and various industries, and proposes some countermeasures.

Investigating the Causal Linkages among Inflation, Interest Rate, and Economic Growth in Pakistan under the Influence of COVID-19 Pandemic: A Wavelet Transformation Approach

“…We can see from Figure 2 that there is an indication of volatility at the 0-4 months scale in all three variables. From panel (a), we observe that growth has high volatility for the medium scale (8-16 months) from 1991 to 2000and 2010to 2020 shows that inflation is more volatile at the medium scale (8-16 and 16-32…”

“…We can see from Figure 2 that there is an indication of volatility at the 0-4 months scale in all three variables. From panel (a), we observe that growth has high volatility for the medium scale (8-16 months) from 1991 to 2000and 2010to 2020 shows that inflation is more volatile at the medium scale (8-16 and 16-32 At the short (0-4 months) and medium (8-16 months) scales, the similarity of highvolatility regions between growth and inflation and growth and the interest rate does not provide us with information about the cyclical effects. Thus, to understand the leadlag relationship between inflation and economic growth and the interest rate and economic growth, we applied the cross-wavelet power spectrum.…”

“…Vitenu-Sackey and Barfi ( 2021) argued that the COVID-19 pandemic has devastated the global economy while causing certain uncertainties regarding economic and social policies. Moreover, Mou (2020) revealed that the COVID-19 pandemic will change the macroenvironment of the world economy from the aspects of aggregate demand and total supply, labor income, and financial market trade. Maliszewska et al (2020) suggested that a global crisis such as the COVID-19 pandemic requires a global response, and that there is a need for global collaboration not just on health but also on trade, finance, and macroeconomic policies.…”

Balancing Economy and COVID 19

“…Till date the aviation sector has not been able to cope up with the pressure and majority of the aircrafts are grounded. These are all labor intensive sectors and any adverse impact on these sector will have magnifies negative impacts multiple lives are dependent on it (14).…”

Financial Stress and Buffer Effects of Trust in Policies in Business Life During the COVID-19 Pandemic

“…The spreading speed of this epidemic, which drags the world economy into a devastating global recession, and the risks it entails, forces governments to implement policies to reduce transmission rates by implementing measures at the expense of restricting personal freedom and creating unfavorable economic effects (Stephany et al, 2020). Because of its high contagiousness, mortality, and incubation period, the primary preventive measures of the epidemic are to control social distance and isolation, that this situation immensely affected the economic environment, total supply and demand, labor, and financial markets in the world (Mou, 2020).…”