Impact of Globalisation and COVID-19 on Economy

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