Coronavirus outbreak was first reported in wuhan, China on 31st December 2019.so before having a look on its impact on global economy let’s first study about coronavirus. Coronavirus (COVID 19) is the large family of viruses that causes illness. It ranges from common cold severe illness disease like middle East respiratory syndrome (MERS_COV) and severe acute respiratory syndrome (SARS_COV).The novel coronavirus is a new strain of viruses that has not been identified in human so far.
WHO is working with global expert scientists, governments and other health organisations to provide advice to countries about precautionary and preventive measures. It is fact that outbreak of covid-19 in China is expected to have a significant impact on global economy including trade supply chain disruption, commodities and logistics.The GDP of China is expected to decelerate rate by 1_1.25 percentage points over 2020 because of loss of production. In China various cities and provinces are in lockdown mode. China accounts for approximately 19. 71% of global GDP at purchasing power parity and obviously it will impact the economic globally. Therefore it is estimated that globe GDP will suffer and impact of around 0.5%.
In terms of trade China is a world’s largest exporter and second largest importer.it accounts for 13% of world exports and 11% of world imports so the lockdown due to coronavirus will affect 500 million people in the country that will deeply impact on its consumption of goods. So we can say that lockdown in China is not only the threat for its economic slowdown but have the great impact on world economy. Up to large extent it will impact Indian industry because in import of raw materials the dependence of India is more on China.The most 20 top products that India imports from the world China accounts a significant share in most of them.so the lockdown in different countries have a great impact on each others economical sector. The Indian prime minister Narendra Modi had also announced complete lockdown of the country for next 21 days on March 24 2020.The IMF has also said that the global economy is slowing down rapidly and it can be Worst than 2009 recession.IMF chief kristaliani Georgieva said that global economy is facing a huge crisis due to outbreak of coronavirus pandemic.
This loss can be so big that there is a possibility of big economic slowdown even than the year 2009.the international monetary fund has said that countries need to take unprecedented steps to deal with it. According to IMF the world economy had fallen by 1.5% due to current shutdown. Investors have remove their investment from emerging markets. Also the Outlook for global growth for 2020 is negative. Global investors have withdrawn investment of nearly USD 83 billion from India and many emerging markets due to coronavirus. IMF has also said that covid-19 pandemic will have worst effect on developing and smaller countries than developed countries. The developed and rich countries should help small and developing countries to fight against the pandemic virus. The World bank is providing loans to different countries to tackle with this poisonous virus. According to IMF the world’s economical position may improve in 2021 but the need of the hour is to control the pandemic virus.