Covid-19 has battered the global economy, causing the biggest recession since the great depression of1930s. The rebound to a new normal may be uneven in many countries as developing countries face more challenges than developed ones.
Let us see the significant changes the world economy has faced after the Covid pandemic hit.
1- Effect on international trade due to covid restrictions-
Covid-19 represented an unpredicted global disaster to the global economy and world trade as productions were scaled back around the world.
2- The decline of the Tourism industry
Countries worldwide decided to close their borders and discontinue their airline services due to the Covid-19 pandemic. United Nations World Tourism Organization reported a global crisis in the tourism industry, and Covid-19 is responsible for a decline of international tourist arrivals that estimate the losses of $300–450 billion.
3- The boom of Pharmaceutical companies
The state of pandemic increased health awareness among people. People started opting for a healthier lifestyle and started medications.
The Pharma companies associated with covid vaccine making like AstraZeneca and Moderna saw an increase in their share price up to 900 percent.
4- Rise of Poverty around the globe
The Covid-19 pandemic pushed an additional 90 to 115 million people into extreme poverty in 2020. In India, around 44 percent of the children are underweight, and the majority of the population lives in absolute poverty. India saw an increase in poverty level by approximately 7% during late 2020.