Impact of Globalisation and COVID-19 on Economy

This report explores the impact of COVID-19 on the global economy, with a focus on the UK and India. It discusses the recession, decline in GDP, unemployment rate, and other effects of the pandemic on these economies.

GLOBALISATION AND
COVID19

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The Covid-19 which was the biggest impact on all over the world and still affecting very
badly in many countries. This pandemic is uncertain and almost of every country government is
not prepared with such bad effect of covid-19. This directly impact on almost all countries
economy that is badly affected and leads to downfall in inflation and growth of economy. This
report will shows that how covid-19 had affected the globalization economy.
MAIN BODY
Covid-19 is an emergency to whole world that keep whole world in proper shut down for
few months. This pandemic had affected the human mentally and physically. Many country had
impacted very badly specially UK, India, and Brazil etc. the globalization had affected through
this pandemic in many ways like economy of many countries are almost at recession stage where
economy are not able to spend amount in market and where money supply in market is very low
(Ozili and Arun, 2020). The uncertainty that affect economy in many ways like unemployment in
country rises at high rate, spending power of consumers suddenly falls from large margin,
reduction in production due to less demand of goods and services in market. This will increase
the recession and government expenditure in countries. Some of government which are weak to
stand out for country people and unable to take care during the uncertainty. Industries are almost
shut that affect the infrastructure of country.
The UK economy had face the very high point of recession tin history that affect the whole
country hardly. The GDP of UK had decline with 9.9% in 2020 and the production,
manufacturing and contracture of UK country had fall same at time of 2009 recession. The
production is fall from 8.6%, manufacturing reduce with 9.9% in 2020 of Covid-19. The
contrition line is fall with 12.5%druing pandemic. The service line is also affected from Covid as
well with 8.9%. The food and beverages are fall with 44% in country as spending power of
consumers are reduce with high numbers. The hotel industry had impacted with 64.1% fall in
demand of accommodation during pandemic. Also, educational sector had impacted with 12.2%
within UK country. The UK IT sector is not much affected but reduce by 7.8%. The major
reason to impact Corona virus in UK country is also government is not prepared with the
resources they need to be taken care of like medicine, foods and water and other essential items
that are needed by consumers during lockdown if happen (Coronavirus and the impact on output
in the UK economy: December 2020).
The consumers are demand for food and water is very high during lockdown which are
unable to meet by suppliers (Shrestha and et.al., 2020). The medical facilities are also not be well
planned by government that impact the Economy of UK. However, additional to Covid, Brexit
impact is also another reason UK had faced such a high recession and results in unemployment,
lower spending power and demand of consumers. While government also getting low foreign

direct investment in country that also come as a barrier in UK economy to invest by foreign
investor.
On second note, Indian government had also highly affected with the Covid-19 factor. It is one
of the most affected country by Corona Virus which impact high population of India. The
economy of India is already at developing stage, while covid-19 had add up to economy to fall
again with the implications and results in recession in country. The government of India is had
use many factor to avoid the impact of Covid- 19 on economy condition bit yet is this pandemic
affect the whole globalization process. The GDP is fallen 23.9% and make record that had fallen
in history of Indian economy (Bagchi and et.al., 2020). The unemployment rate of India is again
increased with high numbers. The major people which are affected with lockdown is poor
worker employed in industry and labor that are unable to survive lockdown and covid-19 impacts
on healthy and financial condition of lower class people.
More than 45% of household had impacted with Covid -19 and dropped down in income level of
consumers compare to previous year. The Indian economy is expected to lose over 32,000 crore
during the lockdown starts. The unemployment rate to 26% in country. The Indian companies
started temporarily terminate employees due to less demand and supply in market. The
production of major firms like L&T, Bharat Forge, Birla group that affect their production
process with almost half or less during lockdown (Chaudhary, Sodani and Das, 2020). Due to
pandemic 53% of projects in country had affected due to less employees and flow of money in
market. The stock market of India is crash with high numbers due to Covid-19 that is affects all
around the world. The imports and exports are being reduces and only essential items are
operating in country. The demand for goods like food and other essential items are very maintain
by government in very effective manner but also face many problems in some areas of states in
India.
However, government of India also announced high amount on food security and health measure
that help consumers to survive the pandemic and impact less on financial position of every
Indian Citizen. The taxes rate are reduce by government and subsidies are provided to industries
especially for small and medium as they contribute major part in Indian economy (Singh, 2020).
To develop Indian economy again Central bank and government had taken certain measure to
overcome the recession period of country.
CONCLUSION
The above repost shows that covid19 had impacted mentally, physically and financially
to every economy of countries. Major effect are impacted on UK economy and Indian economy
which faced many problems during lockdown. Both country had increase in rate of recession,
GDP had fallen with high numbers. The unemployment rate increase, demand and supply of
goods and service in market fallen with high percentage and people are unable to survive the
lockdown. While government had support lower and middle class income by reducing tax and

providing subsidies and providing all essential requirement to survive in Lockdown and after
effects.

REFERENCES
Books and Journals
Ozili, P.K. and Arun, T., 2020. Spillover of COVID-19: impact on the Global
Economy. Available at SSRN 3562570.
Shrestha, N., and et.al., 2020. The impact of COVID-19 on globalization. One Health, p.100180.
Bagchi, B., and et.al., 2020. Impact of COVID-19 on Global Economy. In Coronavirus
Outbreak and the Great Lockdown (pp. 15-26). Springer, Singapore.
Chaudhary, M., Sodani, P.R. and Das, S., 2020. Effect of COVID-19 on Economy in India:
Some Reflections for Policy and Programme. Journal of Health Management, 22(2), pp.169-180.
Singh, B.P., 2020. Impact of COVID-19 on rural economy in India. Available at SSRN 3609973.
Online
Coronavirus and the impact on output in the UK economy: December 2020. Available through:
https://www.ons.gov.uk/economy/grossdomesticproductgdp/articles/
coronavirusandtheimpactonoutputintheukeconomy/december2020#:~:text=6.-,The%20UK
%20economy%20during%20the%20coronavirus%20(COVID%2D19)%20pandemic,declined
%20by%209.9%25%20in%202020.&text=GDP%20measured%20by%20the%20output,growth
%20of%201.4%25%20in%202019.