The corona pandemic is on track to case the worst recession outside of the wartime in 100 years
The strict lockdown and travel restrictions imposed by countries around the world have led to a steep decline in business activity. Global supply chains have been helped, inequality and debt levels have soared, and confidence levels have fallen
“Economic impacts are dire everywhere” the recovery will be slow. The crisis will have long-lasting effects. Disproportionately affected the most vulnerable people.
how has been the economy hit
The enemy has pushed the global economy to start shrinking, and growth stops.
In the US covid19_, related disruptions have led to millions filling for unemployment benefits in April alone. The figures were at 20.5 million and are expected to rise as the impact of the pandemic on the US labor market worsens. As per a Reuters report since March 21, more than 36 million have filed for unemployment benefits which are almost a quarter of the working-age population further, and early analysis by IMF revels that the manufacturing output in many reflects a fall in external demand and growing expectations of a fall in domestic demand
corona ( covid19) and economy growth
The IMF estimate of the global economy growing at -3 percent in 2020 is an outcome “far worse” then the 2009 global financial crises economics such as the US, Japan, the UK, Germany, France, Italy, and Spain are expected to contract this year by 5.9, 5.2,6.5, 7, 7.2,9.1, and 8 percent respectively advanced economies have been hit harder, and together they are expected to grow by 6 percent in 2020
Emerging markets and developing economies are expected to contract by -1 percent. If china ch excluded from this pool of countries, the growth rate for 2020 is expected to be -2.2 percent china GDP dropped by 36.6 percent in the first quarter of 2020 while South Korea’s output fell by 5.5 percent since the country didn’t impose a locky but followed the strategy of aggressive testing, contact tracing and quarantining.
In Europe, the GDP of France, Spain, and Italy fell by 21.3, 11.3, and 17.5 percent respectively
oil and natural gas
Due to the fall in natural global industrial activities has been affected, oil prices fell further in march as the transportation section, which accounts for 60 percent of the oil demand. Was hit by due to several countries imposing lockdown not only oli early this year in China LNG buyers halted their imports as storage tanks filled
Due to lockdown in China followed by in the US and Europe, the demand for industrial Metals reduces as factories shut down as per IMF, china accounts for roughly half of the global market for industrial Metals.
food and beverages
IMF projects a decrease in food prices by 2.6 percent in 2020, caused by supply chain disruptions; border delays food security concerns in the region affected by covid19 and export restriction.
In the lockdown period, while the price of cereals, oranges, seafood, has increased, tea, meat, wool, and cotton have declined.
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