COVID-19 has caused a global economic recession worse than the 2008 financial crisis. Many countries experienced record contractions in their GDP, such as France at -13.8%, the UK at -20.4%, and India at -23.9%. Globally, an estimated 400 million full-time jobs were lost in the first six months of 2020, and worldwide income fell by over $3.5 trillion. Emerging markets and developing economies have been especially hard hit due to weaker healthcare systems, loss of trade and tourism, and mounting debt. The pandemic will require strong economic policies and coordination between countries to address the crisis.

1. THE
CORONAVIRUS
EFFECT ON
GLOBAL ECONOMY

2. How COVID-19
affected global
economy?
Topic:

3. COVID-19 is the infectious disease caused by the coronavirus
SARS-Cov-2, which is a respiratory pathogen.
The World Health Organization first
learned of this new virus from cases
in Wuhan, China on December 31,
2019. Since then coronavirus has
spread all around the world reaching
all continents and approximately 235
countries.

4. Many of the countries took action
and stablished security measures to
prevent more cases. There is no
vaccine yet, world scientists are still
working on it. This pandemic has
changed the world in many aspects
like social, economic and political.
We are going to focus on the
economic impact in the world.

5. The World Bank believes that the
Covid-19 plunged the world economy
into its worst recession since World
War II (1939-1945), although there are
those who dare to say that it is even
stronger than the Great Depression of
the 1930s.
COVID-19 has caused an economic shock three times
worse than the 2008 financial crisis.

6. Europe and emerging markets
have been hit hard
economically, only China was
spared from falling into
recession.

7. A United Nations report, published in
January 2020, estimated a moderate
global economic growth of 2.5% for
this year. But everything changed with
the pandemic. Now, the more
optimistic one points to a contraction
of -4.9% or more.
- 4.9 %

8. recorded a record
contraction of 9.7%
Brazil United States Japan
Europe
The new coronavirus and the containment measures led the
powers to a strong decrease of the Gross Domestic Product (GDP),
for example:
9.5% 7.8%
12.1%
France
13.8%
United Kingdom
20.4%
Russia
8.5%
India
lost 23.9% of
its GDP

9. UNEMPLOYMENT

10. Since the beginning of the pandemic, approximately
1,185,024 formal jobs have been lost, and it is
estimated that by the end of 2020 the unemployment
rate of the Economically Active Population will reach
11.7%, which would equal to around 6 million people
being left unemployed, this according to the
International Labor Organization. The OIT also stated
that 44% of the employed population might be affected
by suffering from a salary and/or working hours
reduction.

11. But this is just one side of the crisis;
in Mexico, 55% of the employed
population works in informality, and
almost half of this percentage does
not have social Security; also, almost a
third of the people who kept their job
has worked from home since March,
but only 70% of them counts with the
necessary equipment to do so.

12. And still, this crisis has not
affected everyone equally;
Mexican women are the most
affected group by
unemployment, with around
3.2 million women losing their
job, and almost 2 out of every
3 jobs lost belonging to female
workers.

13. But at the end, not everything has
been bad; of the 12.5 million people
who were left unemployed because
of the pandemic, 7.1 have gotten
another job, in other words, 53% of
the lost jobs have been
recuperated; but even so, this
means there are still 5.3 million jobs
that have not been recovered.

14. Consequences of the
economic downturn

15. Global stock markets experienced
their worst crash since 1987, and
in the first three months of 2020
the G20 economies fell 3.4% year-
on-year. Between April and June
2020, the International Labor
Organization estimated that an
equivalent of 400 million full-time
jobs were lost across the world,
and income earned by workers
globally fell 10 percent in the first
nine months of 2020, equivalent to
a loss of over US$3.5 trillion.
2020

16. Emerging market and developing
economies will be buffeted by
economic headwinds from
multiple quarters: pressure on
weak health care systems, loss of
trade and tourism, dwindling
remittances, subdued capital
flows, and tight financial
conditions amid mounting debt.
Exporters of energy or industrial
commodities will be particularly
hard hit.

17. The pandemic and efforts to contain
it have triggered an unprecedented
collapse in oil demand and a crash in
oil prices. Demand for metals and
transport-related commodities such
as rubber and platinum used for
vehicle parts has also tumbled. While
agriculture markets are well supplied
globally, trade restrictions and
supply chain disruptions could yet
raise food security issues in some
places.

18. All this crisis also affected millions
families around the world because,
with all this unemployment, the
economic support of a household
decrease in an important amount and,
unfortunately, that means that they
could loss their home, better studies
opportunities and it even could
decrease their food income.

19. Source Sans Pro
Conclusion

20. Governments currently face a difficult
choice between stopping economic activity
or stopping the pandemic. The sooner and
more drastic measures are imposed to stop
the spread of the virus, the greater the
short-term economic impact, but the faster
the containment of the pandemic can be.
Contamination measures such as
restrictions on mobility or quarantines will
have to be imposed in any case (at the limit,
when the health system collapses, and
ideally, before).

21. Whatever happens, the global
economic impact of the pandemic is
severe, requiring a strong economic
policy response and sufficient
political leadership and coordination
to curb citizen fear. Furthermore,
more cohesive and civic societies will
be better able to meet the challenge
because over the next few months an
exaggerated individualism can lead
to disaster.

22. Thanks for
watching !
*The bibliography is in the description.