The Crisis of COVID-19 and its Impact on the World Economy

On 27 Dec., 2021

There could be other crises as well, but the outbreak of COVID-19 back in December 2019 is the biggest disaster in my eyes. This has been not only disastrous for Wuhan city of China where it kicked off but the world economy has been badly affected too. It has impacted not just the mortality rate but the consequences have gone way beyond this. Strong contingency plans are still being prepared by the countries to safeguard their economies.

The Crisis of COVID-19 and its Impact on the World Economy

The pandemic in question has changed the ways life is lived and business is conducted. From playing, learning, traveling to shopping, working, and doing business everything has changed dramatically. Schools are closed, shops are shuttered, businesses downsized, jobs lost, roadways, airways, railways all seem to be inactive, sports activities canceled, student exams postponed, workplaces limiting personnel entry to critical staff only while others are advised to work from home. Everything’s on severe lockdowns!

The COVID as a global crisis and its immediate aftermath have resulted in reduced consumption and interrupted production. The supply chain networks around the globe have been disordered. The sales have plunged. There is more to say about the aftermath of the pandemic. Every other day companies are deciding to downsize and lay off people without considering the longevity of their services. This has decreased the corporate demand for capital goods. On the other hand, consumers are also altering their consumption patterns resulting in the shortage of many consumer goods in the global marketplaces.

There is no paucity of information about COVID and its effects on the world economy and its linkage with globalization. Google Scholar is full of peer-reviewed articles. There are authentic sites regularly reporting COVID by numbers such as CDC, WHO, and world meter. In short, tons of information can be written on the topic “COVID-19, its linkage with globalization and impact on the global economy” (Fernandes, 2020).