The Covid-19 monster, the great threat
Over the years the world has experienced various situations that have brought not only, the extermination of millions of people, but also effects and ravages in the world economy such as World War II, pandemics such as the plagueBlack, smallpox, anger, yellow fever, Spanish flu and the most recent COVID-19, among others that have marked and afflicted societies.
The expansion and arrival of COVID-19 has negatively impacted the global economy and repercussions on international markets. The COVID-19 a virus that had its origin in the city of Wuhan and that has gradually spread throughout the world shows the relationship between people and their environment, in addition to uncertainty or confusion in values and economies marketsall over the world. The WHO (World Health Organization) has recommended containment measures that are being embodied in very significant initiatives such as quarantine for months, close buildings, companies and limit mobility, with all that that can represent from the point ofCommercial and social view such as the reduction of production, consumption, tourism, etc.
For the economic system to work correctly and there is a balance in this, demand and supply play a fundamental role;With the arrival of this pandemic, which has altered both the demand for goods and services and the supply with the stoppage of production chains that hits world trade with the loss of income and profits due to an increase in unemployment, which would causea reduction in the global economic increase during this period. As international organizations such as the Organization for Economic Cooperation and Development (OECD) and the International Monetary Fund (IMF) warn that pandemic can "reduce world economic growth in 2020".
On the other hand, the Gross Domestic Product (GDP) is a measure that all countries opt for to measure the usefulness of an economy, that is, the value of all goods and services produced in that country in a certain period. In addition to this mechanism, it determines whether an economy is expanding or reducing, the impact of variables can also be analyzed and how these influence socio -political situations. Following the coronavirus, the world GDP will contemplate a decline for 2020 starting with a great economic recession, since it has been seen that the great powers have decreased its GDP as: China 1.2%, the United States a fall of 13% andEurope 6%, among others. Data taken according to the Deutsche Bank’s global economy team. Likewise, the UN Department of Economic and Social Affairs warned, in the last hours, that, in the worst possible scenario, on behalf of the COVID19, the global gross domestic product will not grow a 2.5%, as planned, but will reduce 0.9% for 2020.
What takes the fall in values of values around the world, since, the factors that move the stock exchange such as world GDP has decreased significantly, as well as employment is a reflection of economic march and to theSee that companies have closed by the emergency millions of people have been left without work temporarily or definitely;On the other hand, companies when closing and stop producing people stop consuming and that is where all these factors are reflected in stock markets and markets. On March 16, investors and companies woke up with falls close to 10% in the New York Stock Exchange, considered one of the most important in the world. In Spain, Ibex 35 has experienced even greater losses and, together with Italy, it is one of the countries most damaged by COVID-19. Although not everything is bad since the companies in the pharmaceutical sector increased their value 12 points;Higienes product manufacturers have benefited since their actions grow and earn money. But not only those of this sector, but also those of digital and telecommunications platforms. Likewise, the Top Glove company, the most important health gloves manufacturer in the world, is also taken as an example. The K12 company, dedicated to children’s online education, experienced a 19% rise in the price of their actions, and Teradoc, a videoconference service between patients and doctors has increased the value of their actions by 50% so farof year.
To mitigate the economic impact incited by the Coronavirus, some countries have resorted to take measures to try to cheer the commercial activity within the affected territories, such as exorbitant amounts money to strengthen the system and continue working. For example, the European Union will deliver more than 20.000 million euros to Latin American countries to help in this emergency and destined more than anything to the health sector, in France they have announced that the payment of rent and invoices of light, gas or water is suspended, while the sameState will be responsible for paying the bank credits of the people who cannot assume them because of the epidemic. In Chile the president announced the creation of a fund for 2.000 million dollars for social support for informal workers affected and in Italy the government has injected 400.000 million euros to the liquidity of the companies harmed in order to help them.
Likewise, the crisis originated by the Coronavirus has caused a drastic slope in oil demand, since the manufacturing and domestic dynamism has been oscillated in countless states following the inspection and prevention measures, mostly chosen by many countries by many countries. Apart from consuming less fuel on the stage propitiated by this pandemic, there is another cause that influences the price of hydrocarbon: the internal crusade between Russia and Saudi Arabia, considered the strongest producers of the famous "raw gold" worldwide. The oil price war, later unleashed that Russia refusing the pact with the organization of oil export countries (OPEC), to oppress the extractions of crude oil, submits to an arduous test the stability of Russian economic heritage, jointly intimidated by the still stillinadvertent effects of the pandemic caused by the COVID-19 that were already very evident. As is well known, much of the global economy is influenced by the oil industries, this is also due to its massive production and sale, such is the case of the American and Asian continent.
Colombia will suffer a great impact on the economy;in which the fall in the price of oil is represented which exported to China and represented in 2019 11% of its sales. “The impact on the Colombian economy will depend on the response to this type of phenomena by the OPEC and be able to cushion something the fall we have seen in the price of oil. So our perspective is not of a very substantial impact on the price of oil or crude oil exports in the Colombian economy, ”says Luis Fernando Mejía, director of Fede Development. In addition, as the price of the dollar, which passes from being in 3.300 pesos at 3.899 pesos, so that it could obviously detonIn Colombia it came in descent. On the other hand, the health system and service will be affected, for the collapse of this since there will be a high demand for hospital care in special services and in intensive care.
To conclude, it is known that this pandemic will bring with it a great impact on the world economy and in the financial field, but the human being has not realized that it is being dehumanizing, it should be noted that this health catastrophe has benefited the environment, it istime for all people to join to generate a change not only in the economy, but also in humanist and environmental. This causes Oscar Wilde’s phrase "today, people know the price of everything and the value of nothing".
REFERENCES
- https: // www.the vanguard.com/Life/Junior-Report/20200316/474199840484/coronavirus-economy-world.HTML
- https: // www.BBC.com/World/News-International-51916056
- https: // www.20 minutes.es/news/4178798/0/companies-gain-coronavirus-covid-19/
- https: // elceo.com/Internacional/Countries-Inject-Miles-of-Millions-of-Dolars-A-Sus-Economias-for-Free-Sharh-Coronavirus/
- https: // www.time.com/Economia/Sectors/The-Effects-Del-Coronavirus-For-La-Economia-Colombiana-466802
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