Economic Effects of Novel Coronavirus (COVID – 19) on the Global Economy

Abstract

At the end of 2019 December, the world registered an outbreak of an international pandemic, at China’s Hubei province. At the beginning of 2020, the virus started spreading to all corners of the world. The new novel Coronavirus Disease-19 is expected to affect global economic growth, development, stability and even recovery once the disease is over. Businesses that rely heavily on face-to-face module are likely to face huge economic losses as compared to those whose employees can work from home. The complex interconnected system of different economy actors makes the effects of the pandemic to be transmitted relatively equally to all countries. The world is on verge of witnessing a lapse in economic growth in terms of lack of employment, defaulting, disruption of supply chains, slow production growth and decline in global shares. Worse still, the adverse effects of Coronavirus disease will hit hard on emerging markets (EMs) who rely on local and external credits that are subject to domestic and international currency (FX). As the world continues to embrace protective measures to cut down transmission rate and keep the pandemic in control, more feasible and holistic approaches are needed to effectively inflate the bubble and enable the global economy to thrive.