There have been many speculations by leading economists that the worldwide economy can shrink by 3% in 2020. This slowdown is the steepest compared to any in the recent decade. Lockdown confined millions of people within their homes for months limiting economic activity. The lockdown declared by the nations worldwide has also led to the flattening of the economic curve. All the countries have to come together to fight this global economic battle.
How hard was the COVID blow – Beth Debouvre
It is no doubt that the global economy got pushed towards recession. It has led to the shrinking of the economy, but it has also stopped growth patterns. In the US, economic disruptions led to severe problems where millions of people have filed for unemployment perks and privileges. Even the global labor market has been hit very badly by this pandemic.
In many countries, the manufacturing output has also gone down considerably. This not only reflected a fall in global demand for goods, but even domestic demand is significantly affected in every section of the society. Philanthropists like Beth Ann Debouvre has come up with scholarship plans to help students in this crisis and continue with their education.
Effect of COVID-19 on economic growth worldwide
Even the global financial crisis of 2009 did not hit the economy so hard. The most advanced economy of the world is still struggling to overcome the situation. Many of the industrial activity became limited as governments are implementing strict travel limitations. As most of the countries had imposed lockdown, the world transportation section also got badly hit, leading to a fall in oil prices. Related to the oil price is the price of natural gas, which has even gone down considerably.
Effect on the food and beverage industry
The global food and beverage industry saw prices fall prices by 2.6%. The main reasons for this are security-related concerns, border delays, supply chain disorder, and restrictions imposed on export worldwide. This led to creating a downward pressure on the costs of sugar, corn, soy oil, and even palm oil because of the fall in oil prices worldwide.
Effect of Pandemic on education
The effect of the pandemic is mainly visible in the education sector. The closure of schools, colleges, and universities worldwide has made the education system come to a standstill with students facing uncertain future. Several entrepreneurs have announced scholarships to students with the aim to help them continue their education.
Many mathematics models suggested that the closing of schools and universities will delay the spread of the disease. However, the contacts the kids maintain outside school are also essential to limit the spread of the covid19 virus.
The impact of social distancing had led to a change in the behavioral patterns of the consumer. There is a lot of uncertainty among the consumers regarding how the situation is going to evolve after the lockdown. Thus it will take some time for the people to swallow the pill of COVID pandemic and the after effects.