The Coronavirus is popularly known as COVID-19 which was officially declared Pandemic on 11th of March, 2020 by the World Health Organization (WHO). The virus which started in China on 31st December 2019, has caused a lot of damages in the world. In the past 3 months, the world has been battling with the COVID-19 virus.
The disease, which research has told us originated from a Wuhan seafood market where wild animals, including marmots, birds, rabbits, bats and snakes, are traded illegally. The virus is known to jump from animals to humans. So, the first people infected with the disease -a group primarily made up of stallholders from the seafood market – contracted it from contact with animals.
The Possible Effects of the COVID-19 Pandemic on the World Economy are as follow:
1. 2020 National budget standstill
2. Currency depreciation
3. Lockdown businesses
4. Panic & Fear
- 2020 National Budget Standstill: Due to the COVID-19 which has spread all over the world, Most of the country 2020 budget implementation has been brought to an abrupt standstill. Due to the effect of this deadly disease, all the president of every country has declared ‘Seat at Home’ in all the states of their country, to curtail the spread of the virus which has claimed thousands of lives in the world within the past 3 month.
- Currency Depreciation: The world exchange rate has been affected due to COVD-19 pandemic. For the past 8 months, the conversion of currencies in some countries to a dollar has been static, but recently, the conversion has risen to within the last few months in this 2020. The world currency exchange rate rose as a result of the world deadly disease called COVD-19 pandemic.
- Lockdown Businesses: Top Businesses in the world that pays a lot of taxes which is one of the major sources of government revenue in some country have been suspended till COVID-19 is curtailed. This has brought little or no income generation to federal and state governments.
- Panic & Fear: The fast spread of COVID-19 has caused unimaginable fear and panic in the lives of the citizens of every country. Due to confirmed cases, many citizens of the world are living in fear and panic because nobody knows the carrier of the deadly disease. Family and friends are now isolating themselves, including their relatives. The lawmakers and civil servants are no longer going to work. These have caused a lot of damages to the world economy.
- Death: Due to the Spread of COVID-19 in the world, some prominent leaders in the world who would have contributed positively to the growth of their country have lost their lives. Conclusion:
It is so glaring that the World Economy has been seriously affected by the coronavirus outbreak in 2020.