Analyzing Economic Factors: Impact of Global Lockdown During COVID-19

This report examines the economic impact of the global lockdown implemented due to the COVID-19 pandemic, focusing on factors such as GDP and the financial market. It discusses the initial downturn caused by the lockdown, government initiatives to stabilize the economy, and the gradual recovery as restrictions eased and vaccination efforts progressed. The report highlights the effects on various sectors, including manufacturing, employment, and tourism, and analyzes the skills developed during the research process, such as decision-making, analytical thinking, and time management. The study concludes that while the pandemic significantly impacted the global economy, proactive measures have facilitated a gradual return to normalcy, with lessons learned shaping future economic strategies. Desklib offers a range of study tools and resources to further explore this topic.

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

dropped steeply by 3% to 5% and destroy economic growth. Traders chose to sell their position
and investor had fear to buy for long time. In February many big companies of America like
Apple Inc. and Microsoft started showing less expectation in revenue due to supply chain
affected which is related to china. This is also said by Goldman Sachs bank that there is no
growth expectation from U.S. companies in year 2020. With respect to U.S. Economy, Dow
Jones industrial average index has made a record of achieving single day huge gain and huge loss
in the history. This was showing high volatility in market. S&P 500 indices and Nasdaq
composite index also trying to come up from this situation (Islam, S. and et.al., 2020). US
government passed two trillion U.S. Dollar to provide help their citizen and to get back economy
on track. U.S. took initiate to get back financial market on track as it was before covid-19
outbreak. Covid-19 put major impact on companies supply chain of product, liquidity,
manufacturing, workers etc.
Impact on GDP due to covid-19 outbreak
Many factors are important for growing economy like employment, GDP, manufacturing
segment, financial market, supply chain etc. Economy of any country run continuously by
consumer spending on goods and by manufacturing new products (Ladi and Tsarouhas, 2020).
GDP is one of the factor, gross domestic product which is calculated through total goods and
services produce in country within certain period. GDP of country has fallen to -32.9% last
quarter which was the deepest decline in output since 1947. In case the past record of GDP is
considered, then it can be stated that the current situation is decline in GDP nearly by 3 times.
This decline took place because of covid-19. The economy has touched 5% in 1st quarter and
then fell into recession in February.
Now economy is trying to regain back through resuming economic activity now this
helps in increased GDP by 6.4 % in first quarter of 2021. If this GDP is compared with 4th
quarter of 2019, a 2.4% increase from that quarter (Verma and Prakash, 2020). Due to lock down
inflation has increased, workforce is unemployed, supply chain destroyed, production plant had
shutdown economy reach decline position and 22% fall in global tourism sector. To overcome
from all this situation government took action to provide liquidity in market like removed lock
down as recovery cases increased, reduce interest rates, provide easy money, increase job
vacancies to reduce unemployment, free vaccination.

Result has been drawn from covid-19 pandemic crises, global economy has suffered a lot.
All the activity has stopped which is really necessary to run an economy like manufacturing food
plant had stopped, people lost their jobs, tourism sector was adversely affected and due to this
travelling agency has suffered huge losses (Giese and Haldane, 2020). Many countries export
raw material like metal from china but because of this situation, started manufacturing in their
own country. In financial market share prices of the company has fallen down Many rules and
regulation has been changed.
Q1, 2017
Q3, 2017
Q1, 2018
Q3, 2018
Q1, 2019
Q3, 2019
Q1, 2020
Q3, 2020
Q1, 2021
-0.4
-0.3
-0.2
-0.1
0
0.1
0.2
0.3
0.4
U.S. GDP EFFECT
Row 6
QUARTER
PERCENTAGE
Reflection on my economic learning journey
As a student this was very tough and interesting journey, I got to know how one factor
can effect economy. This was the perfect example of how economy go into recession period and
how government took initiative to overcome from that situation (Kulkarni and Anantharama,
2020). I got to know many things have changed permanently like role of government, interest
rates, technology, globalization etc. being a student, it was helpful to know how financial market
and economy works simultaneously and when investor are ready to invest. As analysed and

come to know, when investors are confidant about the market then buy investment or trade in
shares, commodity and when there is fear, investor sell the stocks. That means fear is directly
related to decline in stock market and demand increased for valuation of safe assets in market. I
came the across news how U.S. Government bond fell to the nearest low price by 116 points and
investor are eager to invest in government safe bond. So here my above studies has proved that
when fear occur, how people find substitute.
As going ahead with my research found that when the covid-19 outbreak took place in
global economy oil market was already on the sward point in terms of prices. Oil prices fall
drastically as economic activity has stopped and this oil and gas sector come at 18th position in
terms of recovery. As i kept going in detail, i learn how unemployment also played major role in
economy fall-down as production plant has stopped this led to decrease workforce in company.
This situation has put directly impact on poverty due to this below poverty line population has
increased highly. Only those companies were growing which are related to necessary product
like grocery, medicine, food and beverages etc. To overcome from this situation government
took initiative which are helpful for me to know how government is taking action to maintain
market stability and get our economy back on track (Siche, 2020). These initiative are work from
home, technological changes, reducing interest rates, providing job vacancies, getting citizen
vaccinated, help in providing easy bad facility and other treatment in hospital. I have also
studied, many companies have faced liquidity crises and come at the position of bankruptcy. To
support them, government keep some fund aside and provide easy money.
Here I have learnt many skills like decision-making, analysing, interpretation, time
allocation etc. Decision-making skill is important to choose one alternative out of others. Here, I
applied my decision-making skill to choose two factors that put major impact on global
economy. I have gone through many articles and then decide which on is best to understand how
economy has affected. Analytical skill also played major role in deciding what is needed and
based on facts and figures. This skill helped me in selecting most appropriate data which are
directly related to my research. Interpretation skill is required to see how these articles are
important to me in my research (Sarkis, 2020). This help me in applying filter on demand basis.
Time management skill is essential because it provides the ability to perform the task on time
and with the best quality which will result in accomplishment of business objective. This
research helped me in applying my theoretical knowledge into practical world and through this

crisis, i have learnt what all economic factors get affected and what are necessary decision or
steps, need to take to recover economy.
CONCLUSION
In this report, as studied about two major global economic factors like GDP, financial
market. It was identified factors such as GDP, unemployment, financial market affected due to
covid-19 pandemic and what all actions have been taken by government to get back economy on
track. This situation hit GDP deeply now everything resuming back as before. People are re-
joining their work and all economic activity are starting gradually. Financial market affected
badly but government provide some fund to stable the market. Here I have also learnt some skills
like decision-making, analytical, interpretation etc. from this situation and research on project.
Here as seen, how covid-19 put drastic impact on all over economy now situation is under
control. Infection and death cases are not increasing in same proportion as before. I have learnt
how government of all the countries who are infected, are taking action to make their country
manufacturing hub and recover from all losses which had gone through.

REFERENCES
Books and Journals
Giese, J. and Haldane, A., 2020. COVID-19 and the financial system: a tale of two crises.
Oxford Review of Economic Policy. 36(Supplement_1). pp.S200-S214.
Haldar, A. and Sethi, N., 2020. The effect of country-level factors and government intervention
on the incidence of COVID-19. Asian Economics Letters. 1(2). p.17804.
Islam, S. and et.al., 2020. Exploring COVID-19 stress and its factors in Bangladesh: a
perception-based study. Heliyon. 6(7). p.e04399.
Kulkarni, B.N. and Anantharama, V., 2020. Repercussions of COVID-19 pandemic on
municipal solid waste management: Challenges and opportunities. Science of the Total
Environment. 743. p.140693.
Ladi, S. and Tsarouhas, D., 2020. EU economic governance and Covid-19: policy learning and
windows of opportunity. Journal of European Integration. 42(8). pp.1041-1056.
Mishra, D., Haleem, A. and Javaid, M., 2020. Analysing the behaviour of doubling rates in 8
major countries affected by COVID-19 virus. Journal of Oral Biology and Craniofacial
Research. 10(4). pp.478-483.
Sarkis, J., 2020. Supply chain sustainability: learning from the COVID-19 pandemic.
International Journal of Operations & Production Management.
Siche, R., 2020. What is the impact of COVID-19 disease on agriculture?. Scientia
Agropecuaria. 11(1). pp.3-6.
Verma, A. K. and Prakash, S., 2020. Impact of covid-19 on environment and society. Journal of
Global Biosciences. 9(5). pp.7352-7363.
Online
The global economic impact of COVID-19. 2021. [Online]. Available through:
<https://www.csis.org/analysis/global-economic-impacts-covid-19>