Impact of Coronavirus (COVID-19) on the World Economy, 2020: A Conceptual Analysis

Abstract

The outbreak of novel Coronavirus (COVID-19) has already disrupted the international economy in various ways and transformed into significant labor market shock. Both supply (production of goods and services) and demand (consumption and investment) are being affected by this pandemic. Both advanced and less advanced economies are seeking to cope with the pandemic, and all are facing limitations in their resource capacities; with the shortfall being more acute in the developing world. The purpose of this paper is to present some adverse impacts on global economy and to sketch out the economic scenario in different continents and forecast some suggestions to recover the situation of this crisis. The findings suggest that, the massive decline of world economy in 2020 could be recovered by the faster global and local recovery rates of economic activity in 2021 with the whole world awareness and cooperation.