COVID-19 has been affected globally. It is one of the greatest crises the world has ever faced. The world somehow managed to save lives but sparked the worst recession, which was never expected. 95% of the world’s countries were projected to have negative per capita income growth in 2020. The global output to fall by 4.9% according to the International Monetary Fund’s forecast. The vaccine is not out yet and many countries are trying to recover from the situation. However, the recovery of the market is highly uncertain and is expected to a slow pace recovery up till 2021. This year lockdown has triggered the worst recession since the Great Depression in the 1920s. The cumulative expected loss to the global economy from this pandemic to the recovery will be approx. USD 12.5 trillion.
The further wave of the virus may again take over the economy, can hit the financial conditions, and dominate it. Economic activity will get a boost only by the positives of the vaccine. The global relations may get deface by the rise of tension in trade, and it may cave in by approximately 12%, as projected. A slow recovery has been estimated for both emerging markets and the development of the economy. China is the only country with an exception as it is larger in the advanced economy. Tourism has been heavily affected by this pandemic which has directly impacted the retail sector and the labor market which was highly dependent on them. Fed has supported through exceptional rate cuts and stimulus payment has also provided relief to the citizens of the country. To stabilize the market and to maintain the cash flow different policies have been brought up. During this health crisis, insurances, subsidies, and grants worked as reassurance for the affected people. International Monetary Fund is continuing to provide as much support by its flexible policies to get rid of these unprecedented conditions.