Research About : Corona Virus impact
Name: Fady Azmy Ibrahim Aziz
Id: 20181034
Contents
2 ..................................... ................................ Introduction
3 ......... ................................ ................................ Chapter 1
3 .......... The Impact of the Coronavirus on Global Trade
4 ..... The Effect of Corona virus on the small companies
5 ......... ................................ ................................ Chapter 2
5 .................... The Effect of Corona virus on the tourism
6 ........ Coronavirus impact statistics on tourism industry
7 ......... ................................ ................................ Chapter 3
7 .................................. Coronavirus effect on black gold
8 .................. Coronavirus impact statistics on black gold
9 ......... ................................ ................................ Summary
11 .................................... ................................ Conclusion
11 ...................................... ................................ Reference
| 1P a g e
Introduction
The coronavirus crisis is a global crisis that has led to a
major recession on the global level. It not only affects human
health, but it also affects all the different economic sectors
that exist within the country. As the whole world stands in a
state of fear and worry about the coronavirus pandemic that
has swept all the countries of the world in recent days, the
developments of this dreaded virus emanating from China,
which is the second largest economic power in the world, has
achieved huge losses as a result of this pandemic. Because
China is one of the major industrialized countries on which
the economies of other countries such as developing
countries depend. For example, China is the largest oil
importer from the Gulf countries, where China represents
about 16% of the world's GDP and the repercussions of any
country's closure of the global economy, and the global
transportation sector.
(China, Japan, Germany, Britain, Italy, France and the
United States) and as a result of these economies being
affected by the coronavirus crisis. International trade has
fallen at the global level, and the reason for that is that these
countries represent about 41% of industrial exports at the
global level, and they represent about 65% of world
manufacturing, and they represent about 60% of gross
domestic product. And this epidemic has stopped all
economic development and decreased the rates of
international trade at the global level
Egypt has been among the countries affected by the
pandemic.
| 2P a g e
Chapter 1
The Impact of the Coronavirus on Global Trade
Most of the problems and the impact of the Corona virus
came from measures by the authorities to prevent the spread
of the Corona virus. And one of these measures in the
country of China was to close factories all over the world.
This decision affected an economy in global trade that relies
heavily on China's industry and production. The French
Economy Minister, Bruno Le Maire, considers the epidemic
an event that completely changes the current development.
The outbreak and the consequences of its spread revealed an
"irresponsible and unreasonable" dependence on China.
Many sectors have long relied on Chinese raw materials or
products. For example, 95% affected the supply of electric
batteries and 80% of the raw materials for the active
ingredients of a drug. The health industry comes from China
or Asia. Another obstacle is dependence on raw materials or
products
| 3P a g e
The Effect of Corona virus on the small companies
The pandemic has already caused massive disintegration
among small businesses several weeks after it emerged.
Before the availability of government assistance through the
Coronavirus Assistance, Relief and Economic Security Act.
43% of businesses were temporarily closed, and nearly all
closures were caused by respondents who were temporarily
shut down largely due to reduced demand and staff health
concerns as reasons for the closure, with disruptions in the
supply chain having less impact. On average, companies
reported having reduced their active employment by 39%
since January 2020. The decline was particularly sharp in
the Central Atlantic region (which includes New York City),
where 54% of businesses were shut down and employment
fell by 47%. The effects have also varied across industries,
with retailers, the arts, entertainment, personal services,
food services, and hospitality reporting employment declines
of more than 50%. By contrast, financial firms, professional
services, and real estate have experienced less turmoil, as
these industries have been better able to move to production
remotely.
| 4P a g e
Chapter 2
The Effect of Corona virus on the tourism
The tourism industry is one of the largest markets in the
world. Until the world faces the coronavirus pandemic in the
21st century, tourism is easily affected by global crises. It's
almost the same day that travelers decide to cancel or delay
their trips, as news spreads, and epidemics are among the
most frightening news for travelers or planners. In such
cases, it may be difficult or impossible to avoid the disease.
Besides, not only travelers but also other people they contact
during the journey are at risk. Passengers are playing a
serious role in transferring epidemics between sites The
spread of the novel coronavirus in most countries of the
world has caused damage to many productive, economic and
social sectors, and thus incurred huge losses. The global
tourism and travel sector is one of the economic sectors that
suffered the most heavy losses as a result of the spread of
this virus. The tourism and aviation movement was
completely stopped in the period of February 2020 until the
end of 2020. It should be noted that the global tourism sector
is witnessing a crisis that it has not experienced since the
second world war, which led many countries to resort to
decreasing their expected plans in tourism amid pessimism
about the future of tourism activity, the will of which is an
important item in the economies of many countries.
| 5P a g e
Coronavirus impact statistics on tourism industry
Global tourism costs could be up to US$8.1 trillion lower
than predicted after the COVID-19 impact, with
international tourists down by 65% in the first half of 2020
as COVID-19 restrictions were imposed around the world.
Experts predict that it may be 2024 before international
travel returns to 2019 levels. A quicker return to
international travel is believed in the Middle East tourism
expert community. With 83% of experts believing that the
beginning of 2021 will see the return of international travel,
this is more than the 63% of experts in the Asia-Pacific
region who set their sights on the latter half of 2021. The
return of local travel and "residency" is expected to be a
boon to the entire industry. In a post-industrial world, the
recovery will come from locals willing to explore and spend
money at home. Domestic traffic is expected to grow
strongly next year and is expected to recover 1-2 years ago
from travel abroad. With travel halted, an unprecedented
amount of job losses has come in the global tourism sector. It
is expected that 100.8 million jobs were lost in 2019.
Governments around the world are doing their best to
provide job-retention programs and help maintain workers.
FDI is expected to fall by up to 30% during 2020 and 2021
with the tourism industry being the worst-hit sector.
| 6P a g e
Chapter 3
Coronavirus effect on black gold
The drop in the price of a barrel of oil reached about $18
per barrel during March, the lowest price per barrel in 18
years. This came as a direct effect to stop international
demand as countries learned of the stoppage of industries
and extracting oil, in addition to stopping maritime and air
transport due to the effect of quarantine on the countries
affected by the Coronavirus. Saudi Arabia decided to flood
the international oil market with a huge quantity of oil to
prevent further decline in the special future after the failure
of arrangements between Saudi Arabia and Russia Inzima,
the Saudi Arabian Oil Price Reduction Institute, has pushed
Saudi Arabia to increase production to 12.3 million barrels a
day, the highest production it can produce
Although the drop in the price per barrel is a response to
previous channels, it has in fact created a double shock for
oil-exporting countries - especially those that rely on their
own revenues. On the other hand, we find the shock
resulting from the outbreak of the Coronavirus Pandemic.
On the other hand, we find the collapse of oil prices. It is
expected that the Middle East and North Africa (MENA)
countries will be the most affected by this double shock,
especially Saudi Arabia, which has not recovered fully from
the collapse in 2014 of prices. The preliminary figure shows
the World Bank's expectations for the impact of the price
collapse on initial expectations in the Middle East and North
Africa.
| 7P a g e
Coronavirus impact statistics on black gold
The collapse in oil prices is directly lower than the GCC
income.
A simple way to figure out the real income size, the effect of
changing the price of oil is to double the difference between
production and consumption (net oil exports) as a
percentage of GDP by changing by one percentage point in
the price of oil. For example, assuming that oil prices remain
48 percent lower than the 2019 level, Kuwait - where net oil
exports account for 43 percent of GDP - will see a real
income decline of about 20 percent of GDP. The economic
wealth of other countries in the Middle East and North
Africa is likely to be linked to those of the GCC. Lower oil
prices are likely to hurt both oil importers, exporters, direct
exporters and indirect importers, as well as lower foreign
direct investment, remittances, tourism and grants from
exporters.
| 8P a g e
Summary
The widespread outbreak of the new Coronavirus 19-Covid
pandemic has caused the global economy to enter a recession
that analysts expect will affect more than the 1930's
recession caused by the global depression, especially if the
epidemic continues to spread with governments and
international institutions not taking measures to contain it.
The economic effects associated with the spread of this
pandemic are due, in particular, to the stagnation of both
world demand due to the low demand for consumption
resulting from the closure of cities, the partial or total
cessation of work, in addition to the stoppage of supply
resulting mainly from the cessation of factories, supply lines
and manufacturing. In addition to both channels, there is a
state of uncertainty which has become particularly
prevalent, with the inability to predict the evolution of
events in light of the failure to detect a vaccine or a vaccine
that eliminates the virus. Uncertainty and the accompanying
fear are driving capital flight and private investment to a
near-paralysis of global financial markets. All of the former
effects are being doubled on the rentier countries, which are
facing a double shock combining the effect of the spread of
delinquency with the collapse of oil prices in global markets.
All of the above effects call for concerted international and
domestic efforts to address this unprecedented crisis,
ensuring the health of people while protecting low-income
groups and working to correct economic imbalances and
vulnerabilities to face any similar crises in the future.
| 9P a g e
Conclusion
The Egyptian government should have implemented more
robust precautionary measures such as a comprehensive ban
system, instead of a partial ban. The partial ban does not
contribute to reducing the number of infections, because
individuals interact with each other at the time when
movement and transportation are available. This is one of
the most dangerous means of transmitting the disease among
individuals as a result of people touching the things inside.
The crisis over the Egyptian economy and human lives could
have been mitigated by the implementation of the total ban.
The Egyptian government should have allocated a large
portion of the budget to spend on the health sector to help
doctors, because it is the most important sector in the state
to deal with this pandemic, and building many hospitals to
isolate patients who have been infected with this virus. The
Central Bank should have expanded projects to finance the
political crisis and the Egyptian economy, and the monetary
sector has been damaged by the reform program. In 2016,
for example, the state built many factories that specialize in
manufacturing medicines, which at present helped it
manufacture antibiotics that try to treat individuals who
were exposed to this virus. Had it not been for the economic
reform program that the state followed in 2016, the state
would not have been able to manage the crisis well to face
this epidemic, which doctors do not know at any time they
will discover a cure for this dreaded epidemic that has
claimed thousands of lives and does not know at what time it
will end.
| 11P a g e
Reference
https://democraticac.de/?p=67683
Economic research forum:Rabah Arezik, Rachel Yting Fan, Ha
nguyen in Covid-19 and Oil Price Collapse: Coping with a Dual
Shock in the Gulf Cooperation Council 2020
Nwokolo, C. I., Ogbuagu, M. I., & Iwegbu, O. (2020). Global
Shock in Economic Activities: COVID-19 Pandemonium.
Research Square. https://doi.org/10.21203/rs.3.rs-20705/v1
https://www.amcham.org.eg/information-resources/covid-19response/economic-impact-of-covid-19-a-research-note-byamcham-egypt
https://www.researchgate.net/publication/344328254_CORONA
VIRUS_IMPACT_ON_GLOBAL_ECONOMY
https://www.researchandmarkets.com/reports/5170947/market research-services-globalmarket?utm_source=GNOM&utm_medium=PressRelease&utm
_code=7zh3nr&utm_campaign=1453141++Worldwide+Market+Research+Services+Industry+to+2030++COVID-19+Impact+and+Recovery&utm_exec=jamu273prd
| 11P a g e