Write an essay on topic in about 150 words:
1) Covid-19 and World Economy
Answers
Answer:
The COVID-19 pandemic has had far-reaching economic consequences beyond the spread of the disease itself and efforts to quarantine it. As the SARS-CoV-2 virus has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business in the services sector.[1] The pandemic caused the largest global recession in history, with more than a third of the global population at the time being placed on lockdown.[2]
Supply shortages are expected to affect a number of sectors due to panic buying, increased usage of goods to fight the pandemic, and disruption to factories and logistics in mainland China. There have been instances of price gouging.[3] There have been widespread reports of shortages of pharmaceuticals,[4] with many areas seeing panic buying and consequent shortages of food and other essential grocery items.[5][6][7] The technology industry, in particular, has been warning about delays to shipments of electronic goods.[8][needs update]
Global stock markets fell on 24 February 2020 due to a significant rise in the number of COVID-19 cases outside mainland China.[9][10] By 28 February 2020, stock markets worldwide saw their largest single-week declines since the 2008 financial crisis.[11][12][13] Global stock markets crashed in March 2020, with falls of several percent in the world's major indices.
Possible instability generated by an outbreak and associated behavioural changes could result in temporary food shortages, price spikes, and disruption to markets. Such price rises would be felt most by vulnerable populations who depend on markets for their food as well as those already depending on humanitarian assistance to maintain their livelihoods and food access. As observed in the 2007–2008 food prices crisis, the additional inflationary effect of protectionist policies through import tariffs and export bans could cause a significant increase in the number of people facing severe food insecurity worldwide.[14]
As the pandemic spreads, global conferences and events across technology, fashion, and sports are being cancelled or postponed.[15] While the monetary impact on the travel and trade industry is yet to be estimated, it is likely to be in the billions and increasing.