Coronavirus economic impact （6do encyclopedia）

[brief (簡報編譯)]

The coronavirus disease 2019 (COVID-19) was first identified in Wuhan, China in December 2019 and subsequently spread throughout the world, resulting in a global pandemic. The impact of COVID-19 on public health has been well-documented, with millions of cases and deaths reported worldwide. However, the economic impact of the pandemic has also been significant, affecting businesses, industries, and individuals around the world. This article aims to provide a comprehensive overview of the economic impact of COVID-19.

Overview

The COVID-19 pandemic has had a severe impact on the global economy, leading to a worldwide recession. The World Bank has estimated that the global economy will shrink by 5.2% in 2020, which represents the deepest recession since World War II. The pandemic has affected different countries and regions differently, depending on factors such as the severity of the outbreak, government policies, and the structure of the economy.

Macroeconomic impact

The COVID-19 pandemic has caused significant disruptions to international trade, supply chains, and travel. The closure of borders and restrictions on the movement of people and goods have affected businesses that rely on global markets and cross-border trade. The decline in demand and disruptions in supply chains have also resulted in a decrease in production, with many businesses shutting down or reducing their operations. The decline in economic activity has led to job losses, reduced incomes, and increased poverty.

Governments around the world have responded to the pandemic with a range of measures aimed at mitigating the economic impact. These measures have included fiscal stimulus packages, monetary policy interventions, and measures to support businesses and individuals. The fiscal stimulus packages have included increased government spending, tax cuts, and direct cash transfers to households and businesses. The monetary policy interventions have included reducing interest rates, providing liquidity to financial markets, and implementing quantitative easing programs.

Sectoral impact

The COVID-19 pandemic has had a significant impact on different sectors of the economy. Some sectors have been more affected than others, depending on their exposure to the pandemic and the measures implemented to control its spread. The sectors most affected by the pandemic include tourism, aviation, hospitality, and entertainment. These sectors rely on social interaction and the movement of people, which have been severely restricted by the pandemic. The closure of borders and restrictions on travel have led to a significant decline in the tourism sector, with many businesses shutting down or reducing their operations. The aviation sector has also been severely affected by the decline in demand, with many airlines suspending their operations and cutting jobs.

The pandemic has also had an impact on the manufacturing and services sectors. The disruptions to supply chains and decrease in demand have led to a decline in production and reduced revenue for businesses. The lockdown measures implemented by many governments have also affected the services sector, with businesses such as retail and restaurants shutting down or reducing their operations.

Impact on individuals

The COVID-19 pandemic has affected individuals in different ways, depending on their occupation, income level, and location. The pandemic has led to job losses and reduced incomes for many individuals, particularly those in the most affected sectors such as tourism and hospitality. The decline in economic activity has also led to increased poverty and hardship for many. The pandemic has also had an impact on mental health, with many individuals experiencing anxiety, stress, and depression as a result of the pandemic and its economic impact.

Government response

Governments around the world have responded to the economic impact of the COVID-19 pandemic with a range of measures aimed at mitigating the effects on businesses, individuals, and the economy as a whole. The most common measures have included fiscal stimulus packages, monetary policy interventions, and measures to support businesses and individuals. The fiscal stimulus packages have included increased government spending, tax cuts, and direct cash transfers to households and businesses. The monetary policy interventions have included reducing interest rates, providing liquidity to financial markets, and implementing quantitative easing programs.

In addition to these measures, many governments have also implemented measures to support businesses and individuals directly. These measures have included wage subsidies, loan guarantees, and measures to support small and medium-sized enterprises. The aim of these measures is to help businesses and individuals to weather the economic impact of the pandemic and to ensure that the economy can recover once the pandemic is under control.

Conclusion

The COVID-19 pandemic has had a significant impact on the global economy, leading to a worldwide recession. The macroeconomic impact of the pandemic has led to a decline in economic activity, job losses, and increased poverty. The pandemic has also had a significant impact on different sectors of the economy, with some sectors such as tourism and aviation being more affected than others. The government response to the pandemic has included fiscal stimulus packages, monetary policy interventions, and measures to support businesses and individuals. The aim of these measures is to mitigate the economic impact of the pandemic and to ensure that the economy can recover once the pandemic is under control.

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[brief (簡報編譯)]

The case for rethinking fiscal rules is overwhelming

Financial Times

23-05-16 04:19

The premise behind fiscal rules, which place limits on governments’ borrowing, is sound on a "good ancestor" principle, thereby leaving future generations with assets and income and not debt and taxes, according to Matthew Taylor, CEO of Royal Society of Arts. However, fiscal rules have tended to constrain investment and growth, taking the view of the financial net rather than the assets created by public investment. Taylor argues the approach means governments have not made the most of opportunities to invest in economic and environmental regeneration, and boost growth and macroeconomic resilience.

https://www.ft.com/content/d57567c3-cd97-4cbe-be00-6cf50886b308

[brief (簡報編譯)]

China’s economic recovery in doubt as industrial output falls short

Financial Times

23-05-16 06:19

Chinese industrial output and consumer spending registered below expectations, leading to concerns of their economic rebound strength after they dismantled their zero-Covid policy. The main measure of investment and youth unemployment have also missed the expectations of experts, casting a shadow on the outlook for the world's second-largest economy. These figures show that the economy has failed to fully recover following the removal of strict anti-Covid curbs last year, with lingering property crises coupled with worry over trade activity adding negative factors.

https://www.ft.com/content/5995f020-f94a-46be-b017-8f1b9003df4e

[brief (簡報編譯)]

Millions in UK face loan repayments battle as cost of living rises

Financial Times

23-05-16 22:19

The UK Financial Conduct Authority (FCA) has revealed that over 3 million more people are struggling to keep up with bills and payments, increasing the impact of the cost of living crisis on UK households, according to official data. This means 10.9 million people are struggling to meet bills and credit payments this month, up from 7.8 million in May 2022. The figures have been published ahead of the FCA’s new consumer duty next month, aimed at strengthening consumer protection measures, including for loans.

https://www.ft.com/content/0ab3ad47-08a2-487a-9cd1-1a12774220ed

[brief (簡報編譯)]

Global warming likely to exceed 1.5C within five years, says weather agency

Financial Times

23-05-17 12:19

The World Meteorological Organisation (WMO) has forecast that global temperatures are likely to exceed 1.5C above pre-industrial levels for the first time within the next five years. The WMO also said that there is a 66% chance that the annual global surface temperature will go above this level for at least a year by 2027. The report, which examines the years 2023 to 2027, has been compiled by staff from 11 international organisations and estimated that within this period at least one year will see a temperature rise in excess of the current record of 1.28C seen in 2016.

https://www.ft.com/content/3db17cdb-6364-4b9a-9e09-59ef86bd91e6

[brief (簡報編譯)]

Carmakers echo Stellantis call to delay EU rules on electric vehicles

Financial Times

23-05-17 17:19

Stellantis has become the first carmaker to urge the UK to renegotiate the terms of its Brexit deal. The parent company of car brands including Alpha Romeo, Peugeot, Vauxhall and Chrysler has called for a delay to beefed-up European Union (EU) “rules of origin”, saying that these could lead to it having to close its Ellesmere Port factory. The factory could be forced into closure as electric vans produced there, which comprise over 70% imported components, face a 10% tariff when they are exported to the EU from next year. Stellantis warned rising costs of raw materials, supply chains and the conflict in Ukraine had prevented it from meeting its planned content standards when announcing the expansion of the Cheshire plant in 2021. Car manufacturers across the UK and continental Europe have echoed its concerns over the rules of origin, which they claim will raise costs for EV drivers and reduce uptake.

https://www.ft.com/content/ec971c18-c428-4979-906e-6ed5109cbbef

[brief (簡報編譯)]

Failure to spot inflation dents central banks’ credibility

Financial Times

23-05-18 04:20

Central banks globally have been accused of failing to spot the degree to which inflation rates would rise and stick, despite record monetary and fiscal support. Almost all rate-setters failed to foresee inflation rising and then overestimated the pace of decline. Advanced economies are experiencing the most vigorous and enduring outbreak of inflation in a generation. The Bank of England is currently holding a “Festival of Mistakes” to celebrate lessons learnt from financial disasters of the past, instead of what some suggest should be more recent errors. Central bankers failing to identify soaring inflation have not only left themselves risking financial instability due to being forced to raise rates faster than is usual but threatened the credibility of institutions that rely on trust to steer the economy toward sustainable growth.

https://www.ft.com/content/1b0203bf-ad58-4189-ad90-38b59b24f236

[brief (簡報編譯)]

London’s economic growth outpaces all other UK regions

Financial Times

23-05-18 12:19

London's economy is faring better than other regions in the UK, growing by 0.9% between Q2 and Q3 2020, according to data from the Office for National Statistics. This compares with a contraction of 0.1% nationally for the period. Wales and Scotland saw falls in output of 2% and 0.3% respectively, while growth was flat in Northern Ireland and England. “Growth in the capital has been masking a disappointing performance across much of the rest of the UK," said Susannah Streeter of Hargreaves Lansdown.

https://www.ft.com/content/789406ef-506b-4a06-8acf-4f50c976b868

[brief (簡報編譯)]

G7 focuses on Ukraine and China’s ‘economic coercion’

Financial Times

23-05-19 17:19

The G7 summit, held in Hiroshima, Japan, is focusing on both heightened global economic uncertainty and a new common approach to China. Alongside climate change and artificial intelligence, President Joe Biden’s national security adviser, Jake Sullivan, has labelled the G7 as the “steering committee of the free world”, underlining the meeting's potential for a generational struggle in a new era of superpower rivalry. The seven countries involved in the summit include the US, UK, Japan, Canada, Germany, France and Italy. During the meeting, members have announced sanctions, including proposals to hit Russia’s diamond business, which has not yet been affected by western restrictions. They confirmed they will provide continued support for Ukraine for “as long as it takes”. Meanwhile, Russia has admitted to “problems” with oil and gas revenues, which have fallen to their lowest level in years, undermining the country’s ability to fund its war in Ukraine.

https://www.ft.com/content/68a5a307-9cbd-43a0-9955-6fb6f3bd2764

[brief (簡報編譯)]

Workcations: good for leisure stocks — if employers tolerate absences

Financial Times

23-05-21 06:19

US travel companies are hoping the "workcation" could provide a solution to the country's notoriously low rate of employee holiday time. Before the pandemic, US workers typically took just 17.4 vacation days, while nearly half of those with paid time off didn't use all of it, according to Pew Research Center. Workcations allow workers to spend more time away from the office than their allotment of vacation days might otherwise allow, but work inevitably creeps into the leisure time. Despite this, a Deloitte survey found that one in four US travellers planned to work during their vacation.

https://www.ft.com/content/ec248b58-5fed-4670-a31e-0da69f1441b2

[brief (簡報編譯)]

Africa needs international help to avoid a lost decade

Financial Times

23-05-22 17:24

Finance ministers in African countries are facing "impossible choices" between serving debt, keeping schools open, and paying civil servants. A severe cost of living crisis afflict the continent, into which 62m people were plunged into poverty since the beginning of the Covid pandemic. There have been some initiatives to improve matters, but they are inadequate compared to the needs of the region, which requires over $1tn annually. A summit next month in Paris presents an opportunity to address the situation, and the author suggests three policies that could help: providing more liquidity, improving debt-restructuring processes, and giving African countries more voting rights at the IMF.

https://www.ft.com/content/5fac406f-a4f1-493f-bac4-007bb12146e5

[brief (簡報編譯)]

China strikes back against US

Financial Times

23-05-22 17:20

Beijing has reportedly launched punitive action against American chipmaker Micron over concerns regarding its products’ network security, thus denting the tech giant’s revenues by a “single-digit percentage”. This retaliation is most likely in response to the extensive chip export controls introduced by Washington last October. Foreign policy experts suggest that the use of tough rhetoric against China may hurt the possibility of cooperation with the west. The US successfully persuaded European countries to take a harder line over China, and an early test will come this week when China’s commerce minister Wang Wentao becomes the first senior official to visit Washington since 2020. Thus, global efforts are being made to build alternative chip supply chains that have the impetus of worsening relations between China and Taiwan, the country that produces more than 60% of the world’s chips and 90% of the most advanced. As the tech battle between the US and China continues, another Big Read suggests the AI revolution is transforming education, forcing schools and universities to restructure how they teach and test students.

https://www.ft.com/content/d84728b9-744c-42b8-ac34-844c4e71def2