The Economic Environment BUSN07025

THE ECONOMIC
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impact on economy due to global lock-down..................................................................................3
Factors that are affected in global economy due to covid-19..........................................................3
Impact on financial market due to covid-19 outbreak................................................................3
Impact on GDP due to covid-19 outbreak..................................................................................4
Reflection on my economic learning journey..................................................................................5
CONCLUSION................................................................................................................................7

INTRODUCTION
Due to covid-19 pandemic several countries across the world declared lock down to
flatten the infection curve. Lock down means live millions of citizen in their home only and
shutting down their business and stopped economic activity. Now some countries has removed
their restriction gradually and resume their economic activities. This report is based on the
factors that are affected global economy due to covid-19 and how government is taking initiative
to recover all losses. These two factors are GDP and financial market and in addition to what all
sectors had suffered and how all are getting back on same position as before (Haldar and Sethi,
2020). Further, going ahead with what are the learning and skill that helped select best out of
other alternative thus all that skills will going to apply to prepare this report.
MAIN BODY
Impact on economy due to global lock-down
On 11 march 2020 the WHO conducted virtual press conference and confirmed that
covid-19 declared a pandemic. As time elapsed, covid-19 viral pandemic kept increasing. This
virus has been spread over 200 countries. This infection had started from China and gradually
spread to other countries thus reducing economic growth, and leading to lock down. Due to
various phases of covid-19 pandemic, government imposed policies of lock-down and
announced maintenance of social distancing to recover from health crisis. In first phase, due to
drop in economic activity government took actions like monetary policy to stabilize financial
market. In second phase, government focused on growth of the economy because of its policies
of social distancing. In third phase, people got vaccinated and economy is coming back on track
(Mishra, Haleem and Javaid, 2020). This viral has infected over 184 million people across the
globe.
Factors that are affected in global economy due to covid-19
Impact on financial market due to covid-19 outbreak
Stock market was on peak before covid-19 pandemic came but during this situation
everything has changed like way of saving, investing, economic activity. Due to liquidity crisis
and fear occurring in financial market, it has impacted on share price of the company which
frequently went ups and downs. After Covid outbreak, declared index of financial market has

THE ECONOMIC
ENVIRONMENT
·

·
TABLE OF CONTENTS
INTRODUCTION....................................................................................................................... 3
MAIN BODY.............................................................................................................................. 3
(a) economic factors affected globally due to covid-19 ..........................................................3
l(b) reflection on my economic learning journey.....................................................................6
CONCLUSION............................................................................................................................ 7
REFERENCES............................................................................................................................ 8

·INTRODUCTION
The economic environment defined as all the economic factors that affect buying habit of
business and consumer therefore it affects the whole performance of company. This report will
cover global economic factors which get affected due to covid-19 pandemic. Further, this report
will analyse about reflection learning journey of economics.
·
·MAIN BODY
·(a) economic factors affected globally due to covid-19
The pandemic has affected lives all across the global along with negative impact on
global economic growth (Yoosefi Lebni and et.al., 2021). Economic factors are influenced due
to pandemic situation but these two major factors of global economy will be discussed below.
Unemployment effect
Increase in unemployment rates became a clear indication of covid-19 impact on the
global economy. In addition to global economy, the recent covid-19 situation hit far deeper than
the crisis situation in 2009. The effects have been seen all across the world. February 2020, it
was starting point of current economic downfall after making the longest period of expansion.
This economic expansion followed by the great recession. In April 2020, US economy has faced
the highest rate of unemployment rate that is 14.8%. Since then, rate of unemployment fell to
5.8% in may 2021. Covid-19 pandemic has impacted on large demographic groups like
graduates, labour force, experienced etc. Graduates, experienced were on high peaks in
unemployment and labour workforce faced relatively decline in participation in organization.
This has also increased population below poverty line. Approx. 108 million worker are now
categorized as poor or extremely poor which means 5 years growth performance come to the
end. From the pictorial graph, it has analysed that unemployment rate is increasing continuously
from 5.66% to 6.47% in 2020.