Effect of Covid-19 on Global Economy (US, China & Russia)

Abstract

The COVID-19 pandemic is considerably different from prior recession-inducing incidents. Infections reduce the workforce. To handle the sickness, quarantines, lockdowns of certain areas, and social isolation are routinely used. Closures of businesses disrupt supply chains and reduce output. Due to increased uncertainty and consumers' fear of spreading the issue, businesses benefit from lower consumer spending. closures resulting in job losses. All result in the same thing: a sizable chunk of the economy gets shut down. Trade and the global value chain have an impact on these domestic trading partners. rather than the Great Depression The effects of COVID-19 are more pronounced on the world economy. According to IMF projections, the global economy will lose 9 trillion US dollars, or six times GDP (M Gupta, 2020). The COVID-19 recession has hurt certain industries—those that depend on the movement of people—more than any other recession, while inflicting relatively little harm to others—those that concentrate on the flow of information. The basis of a city's economy is made up of a variety of businesses, including hospitality & tourism, technology, and government. As a result, how the pandemic impacts a city's primary industry has a significant influence on economic geographies of the COVID-19 recession. Another overlooked part of this problem is the rise in the financial distress experienced by Hispanic or Latino individuals, which can be observed when location and ethnicity are considered together. In this essay, the financial effects of the COVID-19 recession are studied through the identification of issues and the suggestion of legislative solutions in a few key areas (M Chaudhary, 2021). Background of the Study The characteristics of the coronavirus pandemic on the economy of China, Russia and USA may be analyzed by comparing them to recurring characteristics of prior pandemic outbreaks. The effects of pandemics on the economy have been studied in the present study. The health industry's lost revenues from disease-related deaths are the only ones that can be calculated using a partial equilibrium technique. It doesn't consider how it might impact the nation's other industries or geographical areas. It is therefore considered to be a bad tactic. We chose the equilibrium approach to analyses the economic impact of pandemic outbreaks and health issues since it is a great tool to properly explore the consequences. A general equilibrium approach may be used to investigate how the pandemic affects people's health, the economy, and society (J Beckman, 2019). The coronavirus outbreak has brought attention to capitalism's flaws and demonstrated how putting profit ahead of people may have disastrous results. The study discovered that LME economies were more susceptible to the effects of disease outbreaks than CME economies, where government participation decreased the frequency of sickness. This permits us to reach the conclusion that by expanding the involvement of the government authorities, the effect of disease 5 outbreaks may be decreased. The coronavirus pandemic has highlighted the problems with capitalism, which are purportedly caused by putting corporate interests ahead of those of the general people. If society hadn't accepted capitalism, pharmaceutical corporations would have started working on the coronavirus vaccine long ago (Feyisa, 2018).