The Economic Impact of Coronavirus to the Economic Fallout and the Education System of the World

Abstract

This study delves into the substantial economic repercussions of the COVID-19 pandemic, particularly focusing on the services sector and global trade. The services industry, estimating losses in the hundreds of millions, faces significant challenges due to pandemic-induced closures. Global trade has witnessed an unprecedented decline, with a 12.1% drop in April compared to March, exacerbating negative growth trends in the preceding months. Eurozone countries, experiencing a pronounced 13% decline in exports and imports, are disproportionately affected. Unlike the marginal decline since 2018 linked to the USA-China trade war, the current fallout prompts reevaluation of global economic dynamics. The pandemic-induced demand shock disrupts import-export volumes and prompts a reconsideration of global economic interactions. Concerns about reduced economic output, widespread factory closures, and a potential 2% decrease in the Chinese economy highlight the gravity of the situation. The study also emphasizes the Chinese government's swift response, employing fiscal stimulus, infrastructure spending, and rapid hospital construction in Wuhan. As the pandemic unfolds, the study poses questions about the potential transformation of the global economy in its aftermath.