For the first time in six decades, Asia is experiencing a regional recession, or export recession, due to the COVID-19 pandemic. According to the Asian Development Bank (ADB), an export recession is when exports have fallen by at least 5% relative to peak level - falling GDP levels are a direct result of export recessions. The region's current project for GDP growth is .01% for 2020. ADB forecasted Asia's developing economies to shrink by .07% this year, and is expected to rebound and grow next
On 25 April 2016, Saudi Arabia’s crown prince Mohammed Bin Salman has established a new vision of Saudi Arabia called the 2030 vision. The primary purpose of this strategy is to reduce the dependence on oil revenue (30% to 40% of the country’s real GDP) and increase non-oil revenue by diversifying its economy and develop public services such as health, education, tourism. Besides, the vision includes many large construction projects in different cities such as Riyadh medical village and a $1.5
The global economy suffers from an unprecedented health crisis. Countries have responded to this Pandemic in different policies and strategies. One of the response policies is an approach that allows the virus (Covid-19) to go through the people without any lockdown to minimize economic damages. However, this approach has poor health outcomes that put pressure on the country's health system. Therefore, there was an alternative approach that most countries have followed. This approach includes qu
The current macro-economic climate is one that could never have been predicted or that people even believe was possible. This is due to the COVID-19 pandemic. This pandemic has caused all sorts of major challenges in the global and local economies around the world and within the specific countries that foster the economy. When it comes to the current environment, COVID-19 is the main challenge being faced by all. In terms of the global economy for 2020, predictions indicate a decrease in GDP of
The economy was 4 times worse than it was during the 07/08 recession. We are currently at a fragile state, and now the economy has to be careful moving forward. The United States was hit with a number of challenges including job loss, business shut downs, stock's crashing, and school closing. Now with the economy back open it is important for the government to financial support the economy back into the right direction. Another big challenge faced is the unemployment benefits which included an e
I think the challenges faced by the interdependence of the global economy should be discussed in the following aspects. The first is to analyze the degree of interdependence between countries. The degree of interdependence can be measured specifically, including the ratio of the growth rate of international trade to GDP, the ratio of export trade to GDP, and finally the ratio of international capital activity to GDP. Second, the concrete manifestation of the interdependence of economic trade bet
On a normal day in late January, a patient was treated at a hospital in the state of Washington for something that no one knew would have this much of an impact on our lives. Yes, that was viewed as the first identifiable case of the COVID-19 case here in the United States. We all know how this pandemic has affected us up to this point, but the many questions on the future of not only the US but also the world economy are yet to be answered. This article by CNN Business discusses the
It is the largest recession in history caused by pandemic.In such difficult time economy led to volatile, but there are numerous factors like disturbance of global cycle of supply chain, also there is a record that 3.28 million are estimated that Americans will going to face unemployment.
Effects on business
There are many small businesses which are highly going to affect nearly 99% and they employ about half of the US workforce. The hospitality and travel are two most large industries are affect
During one of the economy's most troubled times, it is currently being over thought about the previous undervalue of post-secondary education. Facts have shown that it literally does pay to go to college and obtain a bachelor's degree. In March the unemployment was at 10.3% and quickly jumped to 14.7% in April, being the largest month to month increase since 1948. If you have a bachelor's degree, unemployment in April was only 8.4%; the pandemic is far more destructive to those who have a high
I read an article about Top Ten Global Economic Challenges. This report allowed us to have enough knowledge, assess the global risks and learn more about the critical issues and challenges faced the world.
This article seeks to but the spotlight back on the most consequential issues demanding action. In addition, this Top 10 is intended to mark core issues and challenges a broader and longer-term perspective.
- Energy and Environmental Security:
Emerged as the primary issue. In addition, the potentia
Trade deficit refers to the amount by which the cost of a country’s imports exceeds the value of its exports.
I have taken changes in USA’s trade deficit, reasons behind the current condition and ways to rectify it as the basis of my discussion. A report states “In 2018 the United States exported $2.500 trillion in goods and services while it imported $3.121 trillion, leaving a trade deficit of $621 billion”. Despite the fact that generally the accounts balance as the trade deficit on one hand c
There are many people that the current global economy will be changed due to the global pandemic. However, there will things that will never change that are the key drivers of globalization; “shipping, data, and capital flows, our understanding of comparative advantage, and economies of scale (Fontaine, 2020)”. There will be a few things that will change including monetary and fiscal policies as well as different practices of globalization.
First, there will be less reli
India is one of the world's worst hit nations in the coronavirus pandemic, with reported cases spiking after the nation eased its stay at home restrictions. In total, India has announced more than 400,000 cases of coronavirus. The nation's lockdown started in late March and it was extended a few times. Rigid limitations stopped most economic activities and caused many people to lose their jobs. To relieve the nation’s economy, Indian government has declared a $266 billion aid under both monetary
The year 2020 started and none of us would have ever thought that a virus called COVID-19 would come around and change the entire landscape of the workforce. Affecting all areas from education to jobs all the way to our own mental health. However, as the title suggest COVID-19 is here to stay and it's given us an opportunity to reinvent ourselves and find out what works at home and what doesn't.
Technology is at the epicenter of reinventing the workforce. Before individuals would just work their
As the Covid-19 crisis takes the global economy into a recession, there is a growing temptation to adhere to aggressive monetary easing. We have already witnessed the US Federal Reserve pushing interest rates nearing zero and determined to pump trillions of dollars into the economy. Similarly, the European Central Bank (ECB) has strengthened bond purchases. However, the easing that followed the 2008 recession, similar policies will echo worldwide through exchange rate fluctuations.
The coronavirus pandemic has negatively affected the global economy and in this article, it demonstrates seven different areas that the global economy was hit. The seven charts in it include unemployment, the service industry, manufacturing activity, factory output, global merchandize trade, and economic forecasts. The coronavirus cause countries around the world to lockdown and the reports for the unemployment rate up to May was 5.9% in China, 5.2% in Australia, 5.0% in the U.S. and 3.8% in Sou
It is evident that this pandemic has affected us in ways we never thought we'd witness. From an economy standpoint, it has taken a turn for the worst. Over the course of the last few months, we, as a nation, went on a nationwide shut with the exception of essential businesses (healthcare workers, transportation, banks, etc.). During this time period we've witnessed an unprecedented unemployment rate as well as clai
The COVID-19 pandemic has made an impact on the global economy and it looks like it won't be getting better anytime soon. In fact, it may actually get worse once the stimulus payments stop. Piyush Gupta, the chief executive of DBS Group, a major Asian bank that is based in Singapore, told CNBC that once the government stimulus payments cease, that many companies will not survive and that the current stimulus payments are what is keeping them in business. He is saying that the governments a
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