Will COVID-19 Impact Deep Down in the Roots of World Economy

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The International Monetary Fund and World Bank annual meeting describe the crisis as deeper than the 2008 global financial crash.

The fallout from the coronavirus spread that has killed more than 94,000 people and wreaked havoc on economies around the world could push around half a billion people into poverty – As per Oxfam

Coronavirus (COVID-19) is an infectious disease caused by a newly discovered coronavirus.

The outbreak was identified in Wuhan, China, in December 2019, declared to be a Public Health Emergency of International Concern on 30 January 2020, and recognized as a pandemic on 11 March 2020.

The COVID-19 virus spreads primarily through droplets of saliva or discharge from the nose when an infected person coughs or sneezes, so it’s important that you also practice respiratory etiquette (for example, by coughing into a flexed elbow).

However Studies suggest that coronaviruses (including preliminary information on the COVID-19 virus) may persist on surfaces for a few hours or up to several days (As per WHO Reports.

At this time, there are no specific vaccines or treatments for COVID-19.

First Outbreak

The Coronavirus outbreak was first noticed in the month of December 2019 which create assumptions that the virus originated from a wet market in Wuhan, the Chinese city where the first COVID-19 cases were reported.

But later on with the increased cases of  COVID-19 patient globally, the role of Public health, Labotary of Wuhan came under scrutiny for virus outbreak. There is a prominent rumour spread  that it first escaped from a lab in Wuhan studying bat coronaviruses and then spread to the public.

This theory has also evolved into claims that the virus was genetically engineered to be a bioweapon. But scientists say that while there’s not enough information to pinpoint where the virus came from, there is no evidence that it was created in a lab.

Scientific studies of the virus (COVID-19) say its a genetic makeup is similar to infections that bats contract and it could have been passed to humans through an animal host.

Is COVID-19 a China Virus?

 It is Research over bats in Wuhan leads to possible outbreak origin of COVID-19

• In China, research on bat viruses began in earnest shortly after the SARS epidemic subsided
• In the 2003 outbreak, In southern province of Guangdong of China proved to be deadliest with over 8,000 people was infected. The virus was later traced to a palm civet that had been infected by a bat.
• Bats are most prevalent in the caves in Yunnan province in China's southwestern borderland
• So over the past 10 years Wuhan’s virologists have made numerous expeditions to collect viruses from different bat species, building up Asia's largest virus bank
• The accident can happen, one of Scientist of Wuhan circulated pre-printed paper detailing accidents involving bats at the lab of the Wuhan Center for Disease Control and Prevention (CDC). After being attacked and urinated on by the bats, a researcher quarantined himself for 14 days.
• The lab is located 280 metres  from the seafood market and across the street from the hospital that was the sites of the earliest clusters of COVID-19 cases.

Many  authors made a circumstantial case for the virus "probably originates [ing] from a laboratory in Wuhan However as long the concrete evidence not available, an outbreak of Virus from Wuhan’s Lab will remains a possible scenario only.

Prevention is better than the only  cure

Most people infected with the COVID-19 the virus will experience mild to moderate respiratory illness and recover without requiring special treatment.  Older people and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

Though a patient can recover without requiring special treatment it has been proven  that it can kill, having claimed at least 94,000 lives as of today as per  states by Wordometer (Global Live update here  for Virus cases)

As at the time there are no specific vaccines or treatments available for COVID-19 prevention from it becomes the only solution.

WHO & Govt. of India Prascribes following prevention to followed to prevent spread of Virus:

Global  Outlook

-It Continuous spreading into more than 195 countries & more than 1.5 Million cases it has become one of the biggest threats to the global economy and financial markets.

-Fears of the coronavirus impact on the global the economy has rocked markets worldwide, with stock prices and bond plunging sharply.

-As per Oxfam, the spread of the virus could hit the economy badly and can push around half a billion people into poverty.

-The downgrade in the global economic forecast is made by the OECD for almost all economies:

Source: https://www.oecd.org/economic-outlook/

China’s gross domestic product growth saw the largest downgrade in terms of magnitude, according to the report. The Asian economic giant is expected to grow by 4.9% this year, slower than the earlier forecast of 5.7%, said OECD.

 

Meanwhile, the global economy is expected to grow by 2.4% in 2020 — down from the 2.9% projected earlier, as per said the report.

 Slowdown In The Below Sectors: 

1. Slow down in manufacturing activity for longer as per economist.

2. Services contraction, as virus outbreak reduced customer spending which hurts retails, restaurants Aviation Etc.
3. A decline in Oil Prices
4. Lower bond yields & stock market routs etc.

Follow upcoming articles for the detailed impact over Indian Economy & its sectors.

Stay Tuned.

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