Impact of Covid-19 on Global Economy Structure

Abstract

The Corona virus was first identified in December 2019 in China which spread at an eagle's pace in the world, and brought the global economy to its knees. What is the proxy to COVID-19 in terms of economic crises and how this deadly virus stopped the economic as well as social activities? The influence of the virus could be seen in two ways: at one side it affect the close proximity by practicing social distancing which further led the shutdown of institutions, offices, shopping malls etc. whereas, on other hand economic actors such as consumers, investors etc unable to predict that how long the effect of virus spread will last. To address these issues this study examined the effect of outbreak from 1st May to 31st July 2020 in developed and underdeveloped economies. This study attempted to analyze the entire measures and policies (fiscal policies, monetary policies, and health policies) adopted worldwide to tackle the situation emerged due to corona outbreak. In addition the impact of social distancing on economic activities and stock market indices was also examined. The outcomes indicated a negative relationship between lockdown, travel restrictions, monetary policy, economic activities, and stock market; whereas, positive relationship was found between fiscal policy, internal movements and economic activities; however, no significant relationship was found in rise of number of confirmed cases and economic activates.