Overview of how can Coronavirus impacts the economy of the nation. Source- Times of India and

1. Coronavirus impact on
Global Economy
MADE BY
SURAJ KUMAR
MBA

2. Introduction
 The world economy or global economy is the economy of all humans of the world,
considered as the international exchange of goods and services that is expressed in
monetary units of account.
The following list the country groups with individual countries having major
economies designated by IMF

3. Impact of Coronavirus on World Economy
 “The analysis by the UN Department of Economic and Social Affairs (DESA) said the
COVID-19 pandemic is disrupting global supply chains and international trade”.
 The global economy could shrink by up to 1 per cent in 2020 due to the coronavirus
pandemic, a reversal from the previous forecast of 2.5 per cent growth.
 Taking into account rapidly changing economic conditions, the UN DESA's World
Economic Forecasting Model has estimated best and worst-case scenarios for global
growth in 2020

4. Impact of Coronavirus on World Economy
 Best Case Scenario:
with moderate declines in private consumption, investment and exports and offsetting
increases in government spending in the G-7 countries and China – global growth would fall to
1.2 per cent in 2020.
 Worst Case Scenario:
the global output would contract by 0.9 per cent - instead of growing by 2.5 per cent - in
2020," it said, adding that the scenario is based on demand-side shocks of different magnitudes
to China, Japan, South Korea, the US and the EU, as well as an oil price decline of 50 per cent
against our baseline of USD 61 per barrel.

5. Impact of Coronavirus on World Economy
Factors
Major
Economies
Movement
of People
Fiscal
policy
According to the forecast, lockdowns in Europe and
North America are hitting the service sector hard,
particularly industries that involve physical interactions
such as
Global manufacturing production could contract
significantly, and the plummeting number of travelers
is likely to hurt the tourism sector in small island
developing States, which employs millions of low-
skilled workers," it said.

6. Overview of World Output projection
0
0.5
1
1.5
2
2.5
3
3.5
4
World Economy Estimated World Economy Projection Advanced Economies Estimated Advanced Economies Projections
2018
2019
2020
2021
Source: IMF https://www.imf.org/en/Publications/WEO/Issues/2020/01/20/weo-update-january2020

7. Impact of Coronavirus on World Economy
 Consequences are more permanently negative for industries reliant on ever-
growing long distance travel. The International Air Transport Association said
on 5 March that the 2020 revenue loss for the sector could be between $63
billion and $113 billion. That was before the latest round of travel restrictions.
 However, there will also be investment opportunities. Remote working software,
video conferencing technology, better employee personal technology, etc,
will all experience greater demand. For example, the chart on next slide shows the
spike in downloads of the video conferencing app Zoom at the end of February.

8. Impact of Coronavirus on World Economy
Conclusion:
It is quite possible that 2020 will mark
the inflection point where the
corporate sector realizes that it can do
more with less travel. In that respect,
getting used to virtual meetings and
the immense productivity gains it can
bring will be a positive side-effect of
the crisis response.

10. Thank You!
Stay safe and Inside.