Effects on the World Economy

Effects on the World Economy

Effects on the World Economy David Dollar and Douglas A. in their article titled “Anxiety about the global economy in Davos” According to Dollar and Rediker (2019), key issues that would have an impact on the world economy in the next decade would center on the selection of the next leaders of the World Bank and World Trade Organization, the trade war between the United States and China, Brexit and the EU, and the presidential elections in the United States. The coronavirus pandemic altered the global economic landscape as a whole and established new economic preeminence. The pandemic had an unprecedented impact on the economy. There have been numerous reports of outbreak-related financial losses. According to Wishnick (2010), countries in Asia lost approximately 12 to 18 billion USD as the SARS epidemic affected economic activities. According to Smith (2006), the SARS outbreak had a global economic impact of approximately 30 to 100 billion USD. According to MacKellar (2007), the virus resulted in a decrease of 1% in China’s GDP and a decrease of 0.5 percent in Southeast Asia alone in 2003. In a similar vein, when the coronavirus pandemic began in Europe and the United States in late February 2020, approximately $6 trillion in wealth was lost by global stock marketers. At the same time, approximately $5 trillion in value was lost by the S&P 500 index in the United States, with the ten largest companies in the S&P 500 suffering a total loss of approximately $1.4 trillion (Randewich, 2020; Ozili and Arun, 2020). The IMF predicted that these downward trends in the global economy would result in a global recession similar to the global financial crisis of 2007-2008, followed by an economic recovery in 2021 (Georgieva, 2020). Most nations enacted policies that have both positive and negative effects on the global economy, putting many nations into recession as a result of the pandemic’s pressure on them to respond quickly to an already dangerous disease.