Since January 2020 when WHO declared Covid-19 a World health emergency the outcomes seem never-ending to date. It is not just the worst health emergency the world has seen in nearly a century but also the economic impact it has made on major world economies is quite devastating. It is estimated that since its evolution it has affected the $90 trillion global economy. Not only are the developed countries fighting it hard to minimize the economic impact of Covid-19 but the economic mayhem the developing and underdeveloped countries are going through is unimaginable. It seems like Covid-19 has started a chain reaction of an economic downturn that has affected nearly 200 countries globally.
All of the world is looking at researchers to find a vaccine but it is nearly impossible to find it so early. Most countries are battling to not only contain the spread of Covid-19 but maintain the economy which is plunging at a rapid rate. Covid-19 has seriously put a threat to the global economy which at the moment doesn't seem to be recovering soon. Today we will be discussing the economic impact of Covid-19 as researched by JC Economics Tuition in Singapore:
Never Seen Before Contraction of Per Capita Income:
The severity of Covid-19 has contracted the per capita income globally. Developed economies around the world have expected to shrink 7 percent. The developing economies have also witnessed a relatively higher contraction of per capita income.
Tour and Travel Industries Is The Worst Hit: Covid-19 has been the worst nightmare for the travel and tourism industry. The decline in demand and supply because of the lockdown imposed by every country has resulted in massive cancellation of flight tickets, hotel bookings, conferences, events, etc. The travel and tourism industry is one of the largest contributors to the world economy for a long time. It is estimated that around 60 percent of the businesses are on the verge of closing down and almost 48 percent of people related to the industry are going to lose their job.
Oil Industry Seen Historic Low in Demand and Price: Another Industry which is a major contributor to the world economy has seen a never before low in revenue. Not only the oil industry but even mining, quarrying, and gas extraction seem to have hit hard by the lowering demand. The decline in oil prices has sent a wave of shock for the biggest oil-producing economies around the world. Not only the decline in Brent and WTI crude oil prices was a challenge for the oil-producing countries but because of the zero demand of the aviation turbine fuel (ATF) the oil-producing economies are shattered.
No Demand of Educational Services Impacted Other Sectors: Educational services are also a major contributor to the world economy because not just this sector plays a crucial role in securing economic and social progress but helps improve income distribution. Every year millions of graduates join different sectors and industries and thus boost the economies around the world. Beside this, universities, educational institutions, student visas, online education services, etc. contribute a lot to the economies of the world. Lockdown imposed due to Covid-19 has severely impacted the educational services. No country can achieve economic stability without considerable investment in human capital.
Overall if we look at other sectors like food services, transportation, and warehousing, manufacturing, wholesale trade, finance and insurance, construction, retail trade, information services, real estate, rental and leasing, healthcare and utilities, etc. all have been badly hit by COVID-19. It seems like unmatched planning and strategy have to be put forward to bring back the economy on track.
