How the world economy is responding to COVID-19

The global economy is slowing to a crawl because of the Coronavirus pandemic. This dangerously contagious disease has pushed the world economy to the brink of recession (more severe than the 2008 recession) in just a few weeks. Many factors will define the duration and depth of this downturn. Behavioral response of this virus, economic interventions, and public health responses are few of the critical factors. Rapid News Central is keeping a keen watch on the global economy to aware people about the seriousness of the issue.

Monetary and fiscal policymakers have no playbook to work in this extraordinary nature of the pandemic crisis. Many others are trying to move forward with remarkable bailouts. No one has an idea of how bad the recession will be?

This massive storm has surrounded the global economy and indicators producing the most definite warnings on record about the sharp slowdown of major economies. According to the prediction of the World Trade Organization, almost every region of the world would suffer trade decline to double digits.

Today all the major industries, especially tourism industry and airlines, are on the edge of bankruptcy. Some economists have a hope for a robust global rebound in the third quarter of 2020. This hope is in the mirroring of the recoveries in Asia in 2003 after the outbreak of Severe Acute Respiratory Syndrome (SARS). But it’s a fact that the COVID-19 pandemic could be more financially and economically destructive than any other outbreak of past and it will take longer to get recovered from it.

It is the time when the developed countries must have to assess the less designed to bolster their response capacity and health system to stop transmission of the virus. Otherwise, this pandemic will spread like wildfire, and no one will get a way to escape. Secondly, it is also essential to tackle the devastating economic and social dimensions of the issue. The countries must be united to fight against the virus and to address the profound consequences of this pandemic. A large scale comprehensive and coordinated multilateral response is required that must be at least 10 per cent of global GDP.

Countries are progressively working to end the lockdown and resume the economic activities. Still, it is vital to take this step with a clear, thoughtful plan to effectively manage the post-crisis economy. All this must be happening in three main phases:

  • In the short term ‘’fix the core’’.
  • In medium term ‘’improve the economy.’’
  • In long terms ‘’Change the game innovatively.’’

Finally, when the world gets past this crisis- for sure, the world will- the world economy will face a choice.

‘’ World has to make a roadmap for 2030 Agenda.’’

After COVID-19 world economy is going to change completely. It is required to focus on building more equal inclusive and sustainable societies and economies during and after this crisis. Rapid News Central suggests that the solidarity is the basic need of the entire world right now. Solidarity is the only weapon that can defeat the virus and build a better and progressive world. It is a strong hope that without any extreme disruption like joblessness or widespread business failure, the economies can power down.

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