The Global Impact of Pandemic 2020: A Critical Analysis and a Way Forward

The world is currently witnessing the worst pandemic of all times—the Novel Coronavirus and has seen many such pandemics in the past including the influenza (1918). In the past, pandemics have always had an adverse impact on economies across the globe, and many countries have experienced economic stagnation. The pandemic of 2020 has already started to show its toll on economic actives all around the globe. The IMF also announced that the world may experience a global recession worse than that of 2008. Coronavirus has lead countries to impose long duration lockdowns and to release economic relief packages. International Labor Organization (ILO) has predicted that 38%of all employees in the world are either at a risk of a lay-off or a salary cut which makes up to total 1 billion workers. This paper is focused on global economic impact of pandemic 2020 and a detailed analysis on economies of China and European countries. It will also analyze about expected rise and fall of various economic sectors such as the service industry, online delivery, tourism, commercial real estate, etc. A brief analysis on how china’s economy has rebounded since its re-opening and easing of lockdowns nationwide is done. The analysis suggests that the service sector will experience major losses for a long time. The supply chain disruption will compel countries to be more self-reliant and has also opened up new opportunities for some nations. Latest push in liquidity by the governments will disrupt the credit growth, and investments may take a major setback. Lastly, adaption to new environment and innovation is the only way to survive this crisis.