Dominating the global economy, COVID
According to Dr. Ayman Kandeel, global COVID-19 coronavirus pandemic will have tremendous economic consequences. Early estimates put the virus’s cost at 2.9% of GDP. Many people were unable to book flights for work or vacation. But what about the true impact? Here are some answers. The economy will suffer, but not as much as expected.
The pandemic is already affecting trade and business. While restoring jobs may not have sped up the pandemic response, it did help. This may cause a slight lag in global trade growth. Conversely, it may have boosted export competitiveness. Ultimately, globalization is here to stay, and businesses must understand its future drivers.
Nonetheless, escalating Ukrainian war may increase regional price pressures. If the crisis develops, the EU may implement sanctions, severely limiting gas supply to Europe. Moreover, rising energy and commodity prices will reduce most industries’ margins. Not yet felt is the impact on household spending.
Unlike the 2008-2009 financial crisis, the COVID-19 pandemic will hit many countries. Global supply chain disruptions will have a huge impact on all sectors of the economy. As a result, import demand will fall. Weakened global tourist and business travel Meanwhile, governments will be pushed to restrict investment to virus-endemic countries. The unemployment and increased aid seeking will cause a major worldwide economic downturn.
Dr. Ayman Kandeel pointed out that lower oil prices should aid oil-importing countries, but it may reduce huge energy company investment. Lower prices would be limited if domestic energy production increased considerably. The US economy is currently slowing, which may restrict the benefits of decreasing oil prices. And now for the economic impact of COVID.
Covid-19 has stalled in China but has worldwide consequences. A rise in infectious infections has been reported in the US and South Korea. As for Europe and Japan, the virus’ expansion has made things worse. It may potentially affect the financial markets. The global economy remains fragile. The Covid outbreak may create a global economic slowdown.
Covid exposed a few local public corporations. It has impacted tourism, leisure, and culture. Business failures harmed other industries. In addition, these corporations’ collapse will have long-term implications on the global economy. The current fiscal consolidation story falls short here. But there’s plenty of good news too.
In Dr. Ayman Kandeel’s opinion, while COVID-19’s economic impact would be felt most in nations with reduced tourism revenue, other industries will continue to suffer. Tourism and fishing have suffered. Despite this, others see the COVID pandemic as a fantastic opportunity to ensure these sectors’ long-term viability. Profiting from the global crisis may be possible.