Impact Of Covid-19

The economic state of affairs remains highly fluid, and ambiguity about the length and depth of the health crisis-related economic effects are powering discernments of risk and unpredictability in financial markets as well as with corporate decision-making.

- Dr. Pranjal Kumar Phukan

The World Health Organization (WHO) officially declared the Covid-19 eruption as a pandemic on March 11, 2020, the highest level of health emergency. A mounting list of economic pointers proves that the outbreak is adversely affecting the global economic growth on a scale that has not been experienced ever since the global financial crisis of 2008-2009. Global trade and GDP are projected to wane sharply through the first half of 2020 as global pandemic is upsetting a broad band of international economic and trade happenings from services generally to tourism and hospitality, medical supplies, other global value chains, consumer electronics, financial markets to energy, transportation, food, and a range of social activities etc. The health and economic catastrophes could have a predominantly negative influence on the economies of developing countries that are guarded by limited financial resources and health systems could quickly become burdened.

The economic state of affairs remains highly fluid, and ambiguity about the length and depth of the health crisis-related economic effects are powering discernments of risk and unpredictability in financial markets and corporate decision-making. In addition to it, suspicions regarding the global pandemic and the efficacy of public policies envisioned to limit its spread are adding to market volatility. Moreover, compounding the economic situation is a historic drop in the price of crude oil that imitates the global decline in economic activity, projections for disinflation and adds to the decline of the global economy through several channels.