Coronavirus and Effect on the Purchasing Power Parity of Nations

ECONOMICS

Coronavirus and effect on the purchasing power parity of nations
The effect of the Coronavirus on the purchasing power parity of the country would be
negative. This is because as there is an increase in the public health crisis, there is fall in the
gross domestic products worldwide, because of the shrinking productions and demand and
supply. It is to be noted that economies like China and USA are the prime contributors to the
global economic growth. These economies together with others are investing into domestic
health care sectors and are importing fewer goods, raw materials and services. The other
economies are negatively affected as well, as the demand; production and the employment
are declining drastically. The following picture depicts the same.
(Source: Global Economic Dynamics, 2020).
If the coronavirus continues to spread in the different countries, there would be further
serious impacts on the global economy because of the dangers on interconnectedness and