Economic Impact of Covid-19 #1

In this prolonged quarantine period, the global economy for the majority of the sectors has shrunk. The economy is shifting towards a bear market, where stock rates have fallen exponentially. The effect is so profound that the top 100 world billionaires have lost more than $408 billion USD in the past two months. At the beginning of this global rife, US President Donald Trump predicted COVID to be a health crisis and not a financial crisis. However, contrary to his prediction there have been economic contractions and from daily wage workers to multi-billionaires are suffering through serious financial crunch.

For many countries, it may mark as an event that would take years to recover from the economic losses. The federal deficit is expected to rise to the highest level since World War II. However, the recession cannot be generalised to pharmaceutical, medical and research sectors. The market activity in these sectors has been enormous and is expected to see further growth.