prasad1
Active member
The world is facing a public health and economic crisis, with major implications for global stability
It is being reported that the coronavirus infection has now spread to more than 70 countries, and there is now a greater likelihood of it being declared a global pandemic. China, where the infection first appeared and which has been the most seriously affected, claims that fresh cases have progressively declined, and the worst may be over. It is gradually and incrementally allowing normal life and economic activity to resume.
But the picture outside China is different. There is a continuing spike in reported cases and fatalities, despite drastic measures being taken across countries to limit the cross-border movement of people, shut down factories, schools and offices, and implement strict quarantine measures, both on confirmed and suspected cases. These are creating major disruptions in a densely interconnected global economy, which operates through cross-national global supply chains. The longer it takes for the virus to be brought under control and diminish in intensity, the greater the scale of disruptions.
Even if China is in a position to substantially revive production in its factories, it will not help much if other components of supply chains, located in other countries, continue to be in lockdown. The world is not only facing a major public health crisis, but an economic crisis also. This is leading to stock markets across the world, including in India, registering unprecedented losses. Even without the impact of the coronavirus, the global economy was expected to grow by only 2% during the current year. The latest estimate is only 1%, and some analysts believe that a contraction is likely.
It is too early to say that the crisis has passed its peak in China. The economic consequences may still be dire even if the crisis has passed. An uncertain world has just become even more uncertain.
www.hindustantimes.com
It is being reported that the coronavirus infection has now spread to more than 70 countries, and there is now a greater likelihood of it being declared a global pandemic. China, where the infection first appeared and which has been the most seriously affected, claims that fresh cases have progressively declined, and the worst may be over. It is gradually and incrementally allowing normal life and economic activity to resume.
But the picture outside China is different. There is a continuing spike in reported cases and fatalities, despite drastic measures being taken across countries to limit the cross-border movement of people, shut down factories, schools and offices, and implement strict quarantine measures, both on confirmed and suspected cases. These are creating major disruptions in a densely interconnected global economy, which operates through cross-national global supply chains. The longer it takes for the virus to be brought under control and diminish in intensity, the greater the scale of disruptions.
Even if China is in a position to substantially revive production in its factories, it will not help much if other components of supply chains, located in other countries, continue to be in lockdown. The world is not only facing a major public health crisis, but an economic crisis also. This is leading to stock markets across the world, including in India, registering unprecedented losses. Even without the impact of the coronavirus, the global economy was expected to grow by only 2% during the current year. The latest estimate is only 1%, and some analysts believe that a contraction is likely.
It is too early to say that the crisis has passed its peak in China. The economic consequences may still be dire even if the crisis has passed. An uncertain world has just become even more uncertain.
Time for a G20 summit on coronavirus
The world is facing a public health and economic crisis, with major implications for global stability
