How covid-19 pandemic has reset international relations?
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While the Governments are struggling to fine-tune a balance between saving lives and the Economy, the US and Europe did not lose time to up the ante with China. China stepped up its relief operations and was quick to send relief material across the globe. India too has reached out to China for COVID 19 related PPEs, blood test kits and KN 95 masks.
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Corona has caused uproar in the whole world. Along with health, the whole world is also moving towards a major economic crisis, due to which the global recession is clearly visible. Stock markets around the world have collapsed in the last one month.
The United Nations has warned that the worldwide corona epidemic will snatch employment of 25 million people. It will prove to be a scourge in the prevailing global economic crisis. This will shock the global economy by $ 3.6 trillion. The United Nations said that this would deepen the economic and labor crisis.
Corona virus effects on the world
The International Labor Organization has also said in a study that if a co-ordinated policy is made at the global level, the losses can be reduced to a great extent. In China, 5 million people lost jobs in January-February due to the economic side effects of Corona. This damage occurred due to the shutdown of work and business activities in all cities including Wuhan, Shanghai. The unemployment rate in China also increased to 6.2 percent in February from 5.3 percent in January. This can also have an impact on China's growth rate.
The deadly corona virus that is spreading rapidly around the world has severely affected the global economy. This has affected both demand and supply of goods and services. International crude oil prices have fallen by more than 50 percent since the first meeting of the World Health Organization (WHO) on Corona on January 24, amid increased supply of oil and decreased demand.
The impact of Corona on the world's businesses can be clearly seen, where companies are reducing their operations, employees are being asked to work from home and production targets are being reduced. The Organization for Economic Co-operation and Development (OECD) has estimated 50 basis points (2.9 percent to 2.9 percent in 2019) in global GDP in the first week of March in an interim economic review report. Significantly, 100 basis point is equal to one percentage point.
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Due to the terror of Corona virus, production work is stopped all over the world.- Photo: Amar Ujala
Impact on Asia's economy
The Asian Development Bank said in a press release issued in the first week of March that Corona would have a major impact on the developing Asian economy. It estimated that Corona could cause a loss of $ 77 billion to $ 347 billion to the world's economy, from 0.1 percent to 0.5 percent of global GDP.
According to a Goldman Sachs report (released in the last week of February), this is a setback for the demand for large commodities since the 2008 economic downturn after the Chinese economy was hit by the Corona virus. Corona has caused a historic decline in production and non-production activities in China in February 2020.
Dr. David Kelly, Chief Global Strategist at JP Morgan, said that the impact of being socially distant will be seen in the second quarter of 2020. The report said here - "After social distancing, there will be maritime tourism, air lines, hotels, casinos, sports programs, movies, theaters, restaurants and other industries."
He expressed the hope that this will have a direct impact on the world economy including America and in the coming months, crores of people will have to lose their jobs. Nobel Prize-winning economist Joseph Istlitz claims that the corona virus will affect the global economy badly and that the situation may be worse than the 2008 economic downturn.