COVID-19 and global economy. ECONOMIC ARTICLE

COVID-19 and Global Economy:

COVID-19 global economic impact had severe impact. In this article we will analysis this impact by research article point of view. in this essay covid-19 impact on global economy will be analyze  by using authentic reports and their reviews.

Numerous variables play a role in the economy's expansion and rise in per capita income, and the economy, every economy struggling for positive growth trends. According to earlier analyses, we can anticipate favorable economic growth. A few years ago, both developed and emerging countries experienced a favorable boom. After the 2008 recession, there was consistent growth throughout the past few years. The COVID-19 pandemic had a devastating impact on global economic growth. Every economy struggles to achieve positive, long-term growth. This epidemic, which according to the IMF would inflict a 3.5% reduction in global GDP by 2020, was the largest economic shock in history. Covid-19 showed how the economies of both wealthy and developing countries were ruined. According to various research, COVID-19 has caused incomes in developing states to plummet by 8–77%. In 2020, there were over 255 million job losses, with the losses being much larger in Caribbean, Latin America and Southern Asia and Southern Europe, (Josephson, Kilic, & Michler, 2021)| (Egger, 2021). Author argument is valid for industrialization, its major advantage is reduction in the unemployment rate.  Many studies shows the positive relationship between industrialization and employment rate (Brockner et al 1993).  In developing nations, unemployment is a major concern. Because of the high unemployment rate, the nation is not making the best use of its labour force. Due to its detrimental effects on both individuals and society, unemployment is the biggest economic issue (Amerah, and Khasawneh 1993).

The 3 primary direct processes by which human resources contributes to growth of the economic are production, education and health. The HCI model claims that long-term investments in human capital, particularly those that promote economic growth, notably in the employment sector, can have large financial advantages (Kraay 2021). Because of the recent epidemic in 2020–2021, it was clear that economic growth and employment are correlated (Sipalan 2021). The adoption of technology in accordance with regional needs will boost economic growth and employment rates. Because India is a labor-intensive country, technology that is labor-intensive will fit it well. Industry offers the chance to reduce national poverty by supplying less expensive goods for both domestic and international markets. The major issue is that both developed and emerging countries struggle with their significant foreign debt. One of the reasons is that imports outweigh exports; industrialization will assist to lighten the load.  Because declining returns (particularly to resource) are not as strong as they are in advance economies, developing economies have the ability to grow more quickly than industrialized ones. Additionally, developing nations' institutions, manufacturing processes and technologies might be adopted by less developed nations.

In summation, the article states that since time has evolved, so too should economic desires in order to achieve long-term, sustainable growth. After any misalignment for being stable and expanding, the economy should have come across various means of stabilization. Every economy should adjust its policies in accordance with the needs of the structure.

References:

Amerah M, Khasawneh M (1993) Unemployment in Jordan: dimensions and prospects. Center for international studies, pp. 1–56.

Brockner J, Wiesenfeld B, Reed T, Grover S, Martin C: Interactive effects of job content and context on the reactions of layoff survivors,. Journal of Personality and Social Psychology. 1993, 64(2): 187-197.

Egger, D. M. (2021). Falling living standards during the Covid crisis: Quantitativeevidence from nine developing countries. Science Advances, 70-98.

Josephson, A., Kilic, T., & Michler, J. (2021). Socioeconomic impacts of COVID-19 in low-income countries. Nature Human Behaviour, 557-565.

Kraay, A. (2021). Methodology for a World Bank Human Capital Index. Policy Res. Work. Pap. 2018. Available online: https://openknowledge.worldbank.org/handle/10986/30466.

Sipalan, J. (2021). Update 2-Malaysia’s Economy Posts Biggest Annual Decline since 1998 Crisis. Available online: https://www.reuters.com/article/malaysia-economy-gdp-idUSL4N2KG1HZ.