Home Economy Are we in the global scale economy devastation in 2020?

Are we in the global scale economy devastation in 2020?

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Are we in the global scale economy devastation in 2020?

The current major global problem is the COVID-19 virus or commonly known as the corona virus, because this virus has led to the devastation of a global economy. Since, the place of second largest economy of the world goes to China (Which is estimated as US Dollar 1.3 trillion in 2018 along), Downfall of the Chinese economy is affecting the global economy badly.China runs a socialist market economy since 1980, which crowns the country Asian most powerful and important leader in economically and militarily. Which has major industries in global scale such as manufacturing, agriculture and  telecommunication services. Electronic and car manufacturing are leading and competitive segments in its economy.

How does the three gigantic countries of Asia lead for the economic downfall?

Are we in the global scale economy devastation in 2020?

China, South Korea and Japan the three giants of Asia contributed for the downfall of the entire world’s economy while forming the most joined international economic blocs throughout the world.There are treating for the downfall of the economies of European countries [like Italy, France, Germany, Spain], United states, Africa, most South Asian countries [like India, Sri Lanka etc.], and Australia even and some major companies like Apple, Microsoft etc has already noticed a huge collision. Very recently it has been reported that about 125 countries have been affected by this murderous virus. What are the main affects for the global wealth?The COVID-19 or corona virus slowly runs down the Chinese economy -which is world’s second largest – while dragging the global economy along with it. Because of the spreading of the virus, some towns have been locked down and even transportation problems have been reported recently.Mainly the electronics and automotive industries got the hardest hit, it has been disturbing the industrial supply chain across the region and flow of people between the three countries has also been restricted.

How the global economy rapidly dropped in few months? Because of this rapidly growing epidemic lately it has been reported that about $2.7 trillion could cost the world’s wealth.More than any country the greatest giant of Asia that is China had caused a major economic drop from manufacturing and also from the services sector. During two months the exporting stock has been pulled down by 17% while sales from automobile had been dropped 80%. Not only gigantic businesses restaurants, sporting events, and most of the other services also faced a disruption. Major tech companies include AppleSamsungMicrosoftTesla, and Google have decided to shut down all corporate offices, factories, and retail stores in China temporally.

How does the virus affect for the fuel production?

Oil and natural gas producers have been suffering from low prices on goods for the past year and now expect a sharp drop in global prices for their products. The price of fuel lowed for $49.6 and it’s the lowest level that has been recorded.

Analysts fear it could be more damage to the world’s economy if virus spreads become out of control. Investors reaction to the current situation has hurting badly the global economy and reduce stock prices in major markets. The manufactures in China has been affected most by the ruthless virus outbreak. It has also hit the country’s services industry as declined consumer spending hurt retail stores, restaurants and aviation among others.

Image Source : https://thesarniajournal.ca/local-update-on-covid-19-virus/

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