The Impact of the Coronavirus Outbreak on Global Economics: Essay

This essay examines the economic impact of the Coronavirus outbreak on the Australian and global economies. It begins by highlighting the initial disruption and subsequent government responses, including stimulus packages. The discussion focuses on the effects of the virus on various sectors, particularly the aviation industry, and the predicted contraction in GDP. The essay then delves into the application of economic theories, specifically supply and demand, and non-price determinants, to analyze the market for essential goods like sanitizers and face masks. It explores how factors such as demographics, government regulations, and disruptions in imports and exports have influenced both demand and supply. The essay uses this analysis to illustrate the economic consequences of the pandemic, including shortages and price fluctuations in essential goods. The essay concludes by referencing relevant studies and providing a comprehensive analysis of the economic consequences of the coronavirus pandemic.

Running Head: ECONOMICS 0
Economics
(Student Name)

ECONOMICS 1
Table of Contents
Introduction......................................................................................................................................2
Discussion of Coronavirus...............................................................................................................2
References........................................................................................................................................3

ECONOMICS 2
Introduction
In the past, the health problems of the global economy had been eased and replaced with a level
of hope, until a mysterious respiratory illness spread to the center of China and the world's
largest country, which had a mortal impact. In a trade war that had ravaged both sides, the Global
Market and China had taken a tiny break (Munster et al., 2020).
Discussion of Coronavirus
The Australian Government has reviewed the idea of pumping A$ 17.6 billion ($11.4 billion)
into the economy so that the outbreak of coronaviruses can prevent the country from pushing
into its first recession in almost 30 years. The country has been in charge of the first stimulus
plan since the 2008 global financial crisis that enabled Australia to avoid a recession at the time.
In Australia, analysts predict that the widening epidemic will lead to a contraction in the second
quarter, although it has affected just about 120 people. The expansion forced businesses to count
costs worldwide (Al-Tawfiq, Zumla and Memish, 2014). Airlines have slashed flights and
travelers postpone their work trip and vacations in the aviation industry. Travel bans have been
imposed by countries around the world to try to control the infection. In the latest trimester,
Treasury and RBA expect the effect alone on the two areas to wash out GDP by 0.5% (Yin et al,
2013).
Non Determinants Factors affecting Demand and Supply of Sanitizers and Face masks in
Australia
As because of corona outbreak, globally the demand and supply of hand sanitizers is at peak.
This ever increasing demand of masks and sanitizers has led to disruption in supply of such
products. As no. of cases of Corona is increasing day by day it as lead to ever increasing
demands of products like hand wash, sanitizers face masks and various equipment’s needed to
fight such epidemic. There are various non-determinants factors other price such as
Demographics, Market size, Complementary goods, substitutes available, Future Expectation etc.
As till now 4,093 cases are found in Australia. The president in Australia have said that there can
be seen a great shortage of Face Masks but there is no such shortage found in medicines and

ECONOMICS 3
hospital facilities. Due to disruption in Exports and imports there can be found great
unavailability of Essential Commodities on the other side there is great increase of demand of
such products such as vegetables daily household commodities and safety equipment’s against
corona by not bothering to the rising prices of such products. Demand is also affected by
Demographics of any country the composition of age groups matters a lot. As this disease is
proving dangerous to senior citizens so the country with mainly this composition is also affected
by large demand and short supply of such products. As demand and supply is also affected
because of government regulation, technology used in sanitizers etc (Marty and Jones, 2020).
Government Regulation Increase in no. of patient Technology upgradation No. of suppliers
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Demand and Supply of Sanitizers & Face Maks
Demand Supply
Column1

ECONOMICS 4
References
Al-Tawfiq, J.A., Zumla, A. and Memish, Z.A., 2014. Travel implications of emerging
coronaviruses: SARS and MERS-CoV. Travel medicine and infectious disease, 12(5), pp.422-
428.
Marty, A.M. and Jones, M.K., 2020. The novel Coronavirus (SARS-CoV-2) is a one health
issue. One Health (Amsterdam, Netherlands), 9, pp.100123-100123.
Munster, V.J., Koopmans, M., van Doremalen, N., van Riel, D. and de Wit, E., 2020. A novel
coronavirus emerging in China—key questions for impact assessment. New England Journal of
Medicine, 382(8), pp.692-694.
Yin, J.K., Salkeld, G., Lambert, S.B., Dierig, A., Heron, L., Leask, J., Yui Kwan Chow, M. and
Booy, R., 2013. Estimates and determinants of economic impacts from influenza‐like illnesses
caused by respiratory viruses in A ustralian children attending childcare: a cohort
study. Influenza and other respiratory viruses, 7(6), pp.1103-1112.