COVID-19 Updates

Impact of the coronavirus pandemic on global economy

21st century, an era of technology and globalization, where the entire global supply chain works with mutual cooperation among nations, which eventually generates an equivalent benefit for everyone. For years, the proponents have managed to build a strong notion of globalization, which has made a perception in the business world, to enhance their business activities by going global,  but little did they think that there could be a time where everything in the world, including the topmost economies, would face a strict lockdown, affecting the demand and supply process, and shutting down all the industries, without exceptions. 

The pandemic, known as COVID’19, has affected the entire world, unprecedented. The strategists all around the world are trying their best to come up with a strategy that can slow down the destruction caused by the virus. However, the doctors and scientists including big pharmaceutical companies are working day and night to come up with unique vaccines, to prevent this virus from spreading furthermore. It is pertinent to mention that the worldwide affected patients according to WHO, are more than 12M at the moment, with 571k deaths and 7millions recovered. 

Now, looking at the recovery, one must think that the virus may have fewer consequences than what is being shown on News channels and official government statements, but forgetting the global effects of the virus, tell a different story, where every single nation is failing to survive with this catastrophe and the calamity caused by this disaster. However, the effects can be evident after looking at the factors affected by it. 

The deadly virus brings with it the third and greatest economic shock of the 21st century after 9/11 and the financial crisis of 2008. First signs of the epidemic’s effects on China’s economy are far worse than the initial predictions. The official data reveals a widespread slowdown in its economic activity and signifies the virus caused a 20% GDP declined in the first two months of 2020. By March, Chinese services and manufacturing sector slumped to record lows, its automobile sales sank a record 80%, and exports shrank by some 17% in January and February combined.

The fact that the chances of the changing world order cannot be neglected, is causing many powerful nations go demented. The effects on China may seem destructive, but at the moment, the most affected country is the USA. The United States, which claims to be a policeman for under-developed nations, is struck by one of the worst situations in the history of their country. It is evident that USA’s policy in Trump’s administration is not going well, as they just focus on nationalism, rather than globalization and helping other countries. 

However, by this policy, the USA itself is having a major blow as the most cases and deaths are reported in the USA, and then Italy. China, in the very start, made efforts to make sure they can lower down the consequences, which they apparently achieved. But the USA, being the most powerful country in the World, is far away from stabilizing the virus, within the country. 

Moreover, Trump’s presidency itself is a virus for the country, as this level of aggressiveness in these conditions are worst for the economy. In an interview held in white house after the virus hit the USA, Trump clearly pointed at China and said that he is not happy with China, they could have done more. While referring to the virus, he has stated not once, but many times that this virus is “the Chinese virus”. Statements like these can only help increase the turmoil of the situation.

 China, which is the second-biggest economy, and the USA, which is the superpower, and pretends to be the greatest country, has some responsibility to fulfill, rather than encouraging the dispute they have. Recently, Chinese officials also claimed that the USA is trying to put the entire responsibility of the crisis on China, which is not accepted by them, and they deny the allegations. 

The official of Trump’s administration, also stated that there is a possibility of the creation of a virus in the laboratory in China, on research purposes, and then they could not control it, which resulted in disaster. While in reply China blamed the USA for this catastrophe, as it was started in their region. In both of the cases, the entire world is in crisis and billions are suffering. 

However, it is pertinent to mention that the World is suffering from a shift of power. A power shift is clearly a transference of power from West to East. The west, which includes Canada, the USA, Mexico, etc. are failing to cope up with the virus as compared to the east including China, Russia, Pakistan, Indonesia, etc. This failure to cope up and continuation of economic activities can be one of the reasons for the power shift, ultimately. Secondly, Asian countries are helping each other more than expected, as compared to the western countries.

 China is helping many countries in this time of crisis by sending big deliveries of masks and stuff to cope up with this virus. Likewise, Pakistan sent stuff to Afghanistan which is the neighboring countries and has certain disputes, but still, as a responsibility, they are helping each other in this crisis. Meanwhile, the USA, after the virus was struck worst, banned an antibiotic to be exported for the cure of the virus. These are two different strategies that can clearly be concluded in positivity in the east, and negativity in the west. 

To sum up, if the world knew about the consequences they have to face in a crisis like a coronavirus, they would never believe the theories of the proponents who were aiming to increase globalization. The world cannot go back to school, by canceling the process of globalization because everything is interconnected now, if a thing is manufactured in the USA, then the counterpart travels from different countries and is delivered in the USA. So, clearly the global effect of the virus is very disastrous but a better cope up strategy can be made if all the countries could possibly come together and aim to end this virus, as different minds can invent unique strategies together.

About the author

sana

sana

Khurram Jamil - Digital Marketer By Profession & Blogger By Passion. Food Lover By Choice

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