The 11th March came up with the WHO announcement calling the COVID 19 as a pandemic, which seemed to have spread with great pace in the world. This comes as a rare event, which comes once in a century. As things settle down, the virus is likely to have an impact in society giving the economic and geopolitical consequences. By the end of March, the virus seemed to have affected more than 177 nations all across the world with more than 634,000 cases reported by the global health body along with the deaths reaching more than 30,000 deaths all across the world.
Talking about the Economic consequences it did appear with the advent of the virus.Since past few weeks, we have seen the economic impact over the coronavirus that has put over the domains like manufacturing, supply chains and service businesses in a big way. The businesses like travel and tourism seemed to be significant and one can see the sudden collapse in the financial markets in a big way giving the biggest one-day drop in the sectors of S&P 500 since “Black Monday,” which was witnessed on Oct. 19, 1987 along with giving a significant boost in the volatility, thus bringing out to an end to the long bull-market run, which all started in 2008 financial crisis. The Market volatility was later seen compounded by an oil price war coming along with the collapse as seen in the market seen with the talks found in between OPEC and partners found this month.
A majority of policymakers all across the globe were seen taking actions to add an ease in their monetary policies. Taking a look at the EU, it has also relaxed its fiscal spending rules evident in nations like Spain and Italy where short selling seems to be banned allowing the markets to recover a little. Similarly looking at the other impact, the COVID-19 is going to add the impact in terms of Geopolitics as well. Despite all the efforts carried out by the union government and other groups like IMF and World Bank, the world is likely to witness the imbalances in the world and thus support the nations which tend to remain less in terms of health care systems along with the general resources that come along to manage the response to the impact of the pandemic.
Talking about the political response to the crisis, it seemed to be mixed as one can see the American President Donald Trump has put restrictions on travel to different places in Europe. Thus the travel to countries like Germany, Slovenia, Austria, Denmark, the Czech Republic and Poland seemed to be on halt. As per reports the countries like Germany has the threat of getting the impact by 70% hampering a big chunk of the German population. Now as the WHO is seen leading the support to all the nations including the Europe, Africa and other places with their centers for disease control (CDC), it will add up for their diagnostic testing capability all over the world giving the best of the clinical support for clinicians.