Global Economic Effects of COVID-19

This report discusses the two important global economic effects of COVID-19, including the impact on the energy sector and international tourism. It also includes a reflection on the economic learning journey. Subject: Economics, Course Code: N/A, Course Name: N/A, College/University: N/A

Global Economic
effects of Covid-19

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Discuss the two important global economic effects of Covid-19...........................................1
Reflection...............................................................................................................................3
CONCLUSION................................................................................................................................4
References:.......................................................................................................................................5
Books and Journals.................................................................................................................5
Online.....................................................................................................................................5

INTRODUCTION
The COVID-19 is the global pandemic that still continues with the wide range of repercussions.
The spread of corona virus also said to be COVID-19 has lead to the disruption of the numerous
lives all across the globe and has disapprovingly affected the global economic growth in year
2020 (Ozili and Arun, 2020). COVID-19 became the major and only reason of downfall for the
downturn in trade and economic growth. All the countries are majorly facing the consequences
of the COVID-19 as there is huge disruption in businesses of SMEs and large organisation which
is leading to downfall of their financial resource. The present report will discuss two important
global economic effect of the COVID-19. The report also contains the reflection of the economic
learning journey.
MAIN BODY
TASK 1
Discuss the two important global economic effects of Covid-19.
The covid-19 pandemic has spread all over the world with the alarming speed and has impacted
and infected the millions of people and also bring the downfall in the global economy due to the
restriction on the movement of people outside their home. For the growth of the global economy
the health of human is necessary and evident (Haleem, Javaid and Vaishya, 2020).
According to me the COVID-19 has two important effects on the global economy that are
discussed below:
First important effect: Covid-19 has highlighted the requirement of urgent action to mitigate
the spread of pandemics over the health and economic consequences in order to protect the
vulnerable population of the earth. Every sector has experienced a sequential downgrade in the
growth most important factor that has been affected through covid-19 was the energy sector. The
pandemic has triggered an expected collapse of the demand of oil and petroleum due to
restriction of trade, travel and tourism. Due to this there was also a major crash in the prices of
oil. The export of energy and other industrial commodities are the huge contributor of the
developing economies and emerging markets. Therefore, the hit over the trading due to the
Covid-19 is the effect that has served many countries a plunge into recession of the economy.
The effect of corona virus gas hit the oil price into shock thereby restricting the trading of the oil
into developing countries. The countries across the world that were the net exporters of the oil
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and a source to increase the company economy surprisingly high are experiencing a fragile hit by
the effect of COVID-19 effect (Song and Zhou, 2020). The market of oil collapsed completely
there were providing opportunities to the forms of such countries places with those countries that
are more transition towards the low carbon and also have diversified opportunities for the
resilient economic future as a part of market development. Due to this the global economy has
been facing the major shift in finance as the oil and other energy resources are the part of major
economic contribution. The crash of the prices of oil and petroleum is impacting badly to other
industries too due to which there is huge downfall in the employment rate. Hence, this effect of
the Covid-19 on the global economy seemed to be drastic for the future growth and sustainability
(Dube, Nhamo and Chikodzi, 2021).
Second important effect: Effect of covid-19 has been entailed sharp drop for the international
tourism as it is analysed that there was complete restriction over the transport and transactions
for the foreign trade in order to reduce the spread of corona virus. Even after the reopening there
was only 50% consumption in the international flights and in different transport and
accommodation thereby increasing the losses of the businesses. Due to International tourism
trading transport and accommodation there was the 50% conception of the tax in the global
economy that completely stopped due to the effect of covid-19. In order to generate the revenue
for the global economy of the countries the export tax is applied over the outbound and inbound
your service which includes food and services, accommodations, other transport facilities
recreational and other services. But due to the effects of covid-19 there was unprecedented
downfall in the revenue generation of tourism hospitality and recreation sectors leading to the
downfall of 70% quarterly revenues of the accommodation and lodging sectors. The travel agents
of the countries are facing 50% Store download in the bookings and also the airlines which are
the major source to increase the revenue for global economy through the international tourism
and transportation for expecting the loss of billions in the revenues. Also due to the social
distancing after the reopening the services provided by the mass transport restaurants for only
allowed to have the consumption of 50% of customers at one time leading to the extra expenses
of petroleum and other maintenance cost. The effect of covid-19 in world is leading to the
business closures and the impact on annual economy of countries drastically.
Hence, the above two are the important effects of the Covid-19 that I have analysed but there are
more effects like underutilization of labours, increase in unemployment, and increase the trade
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costs leading to the lower GDP and export implications. The below bar graph is the evidence to
such impacts over the different countries of the world (McKibbin and Fernando, 2021).
Figure 1: COVID-19 and the World of Work, International Labor Organization, 2021
(Source: COVID-19 and the World of Work, International Labor Organization, 2021)
Reflection
I have gained an optimum knowledge about the global economies and current situation of the
global economy. The study and analysis for the global economic effects of the Covid-19 has
helped in understanding the value of the global economy growth and it is useful for the future of
the countries. This has also helped me in enhancing my critical thinking and research skills. The
economic learning journey has helped me in developing my learning skills in the field of the
finance and world’s economy and factors that contribute to the economies of the world. I have
also gained the knowledge relate to the global economies, GDP and how important employment
is necessary for the countries economy to grow. I have also learned about the concept of micro
and macro economies and how different types of business sector contribute their best to grow the
overall economy. Hence the whole economic learning experience has improved my knowledge
in the financial field and about the nation’s economic condition. Through this learning I was able
to develop my analytical skills and able to recognise the factors that are highly important to
improve global economics and also for my personal life (Haryanto, 2020).
The economic learning experience is highly useful for my studies too as being a business and
management student it was very useful as my subject knowledge to understand the businesses
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growth in different sectors. This economic learning is also useful for the subject of economic that
is part of the degree of the Business and management. Through this learning experience I have
gained deep insights about the economic factors that will be useful to me in getting good grades.
The overall learning experience in the particular area of economics was highly knowledgeable to
me and also helped me developing my skills. The economic learning experience will be also
useful to me in my other study subject so that I can decide what business career I should adopt in
order to increase my revenue and also to increase the overall economy. The knowledge about
various economic policies generated by the government of countries for monetary value is key
knowledge in terms of fiscal policy I have gained which has taught me useful aspect of global
economies and also related to my degree. The whole experience seemed to me helping
developing my overall educational and academic skills. Hence, the overall knowledge is also
useful to me in my future career.
CONCLUSION
From the above information it is concluded that COVID-19 has bring the adverse impact on the
economic conditions all over the world. The viral of the pandemic has lead to reduction in the
economic growth and loss to the economies of the countries. Therefore it is also analysed that
global economies has faced the major shocks due to the disruptions in the economic conditions
of the different sectors. Hence, the impact of Covid-19 is also leading to the positive impacts
with the change in fiscal policies and position of the countries that are leading to the recovery od
downfall of the economic conditions.
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References:
Books and Journals
Ozili, P.K. and Arun, T., 2020. Spillover of COVID-19: impact on the Global
Economy. Available at SSRN 3562570.
Haleem, A., Javaid, M. and Vaishya, R., 2020. Effects of COVID-19 pandemic in daily
life. Current medicine research and practice. 10(2). p.78.
Song, L. and Zhou, Y., 2020. The COVID‐19 pandemic and its impact on the global economy:
What does it take to turn crisis into opportunity?. China & World Economy. 28(4). pp.1-
25.
Dube, K., Nhamo, G. and Chikodzi, D., 2021. COVID-19 cripples global restaurant and
hospitality industry. Current Issues in Tourism. 24(11). pp.1487-1490.
McKibbin, W. and Fernando, R., 2021. The global macroeconomic impacts of COVID-19:
Seven scenarios. Asian Economic Papers. 20(2). pp.1-30.
Haryanto, T., 2020. COVID-19 pandemic and international tourism demand. JDE (Journal of
Developing Economies). 5(1). pp.1-5.
Online
Global economic effect of Covid-19, [Online].Available through:
<https://fas.org/sgp/crs/row/R46270.pdf >
World Bank Document,[Online].Available
through:https://documents1.worldbank.org/curated/en/295991586526445673/pdf/The-Potential-
Impact-of-COVID-19-on-GDP-and-Trade-A-Preliminary-Assessment.pdf
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