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Expert Written Model Descriptive Essay on Economic Impact of Covid-19

 

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The expert’s written model about the description of economic changes due to the outbreak addresses the economic impact on several industries that have been adversely affected due to covid-19. The global economy is grinding to a halt.

 

In case, coronavirus remains for a longer period of time, analysts fear that the global economy may slip into recession. Recession sets in when the economy shows two consecutive forms of monetary contractions. However, nobody is able to absolutely predict the vitality, endurance, and longevity of the virus.

 

The International Monetary Fund (IMF) has predicted that the global Gross Domestic Product (GDP) is estimated at 1.6 % for 2020 in comparison to the figure of 2.9 % in 2019. The United Nations conference has declared that the corona pandemic could damage the economy of the globe by up to two trillion dollars this year. In some countries, economic growth may reduce below 2.5 % due to the corona pandemic.

 

In order to deal with the impacts of the COVID-19 outbreak, OPEC has proposed to curb oil output. As a result, oil prices had fallen by almost a quarter as well as demand for fuel had also been expected to decline. A Dutch company has reported on the basis of their economic activity in several countries that a global recession is certain.

 

As in the pandemic, people interact less with the world outside, avoiding work, entertainment, health, education, or tourism, which has resulted in lesser financial activity. Businesses face the challenge of an interrupted supply of parts required for manufacturing their goods. They must have considered the last figures of the isolated or quarantined workforce and factories or units that had been momentarily shut. 

 

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An example of global economic disturbance could be illustrated as when supplies from China had stopped, the pharmaceuticals, automobiles, and mobile phone industries of India had immediately gobbled. This is so because India depends on China for the supply of components for the products that these sectors make.

 

Other than these sectors, the pesticide sector has also been affected as manufacturers are dependent on China. Indian gems and jewelry producers have been awaiting a loss of around one billion dollars. Along with all other industries, the software industry has also processed slowly which easily lessened its progression due to operations from remote locations. There has been an adverse impact on sports as well as the entertainment industry.