DMPQ- CONVID-19 has caused a fall in production and decline in demand. Comment on the economic uncertainty due to CONVID-19.

World economy is expecting a slow down due to the spread of COVID-19 in around 115 countries. WHO has recently termed the COVID-19 pandemic and US has termed it as emergency situation. As a result of the virus spread global economy is facing serious situations like:

  1. Travel and trade have been severely affected in the large parts of the world, with restrictions on movement and cancellation of visa.
  2. Crude oil prices also began dropping due to fears of global recession and drop in demand of energy.
  3. China is the epicentre of outbreak and this slowdown is affecting the global supply chain. Phrama, electronics and automobiles sector are the worst affected.
  4. Although inflation is low but the aggregate demand and investment is low. There is no increase in demand due to decrease in inflation.

The uncertainty is on rise as most of the economy are deciding to become close economy which will affect the global trade. Low crude oil price is going to affect the economies of the major oil supplier (OPEC). The economy was yet to get out of the global financial crisis but this COVID-19 will add more lag in the economy.

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