After the Coronavirus outbreak started from Wuhan, China,the world environment is cleaning up across the globe due to lock down. Thepollution level in busy cities of China, India and many countries around theworld decreased to a considerable level. It was not less than a miracle whenthe capital city Delhi received showers during lockdown and significant drop inmercury, resulting in a cloudless blue sky. Thousands of birds have been seenin Peru & Auga Dulce beach of Italy. The municipality authorities are busyin the process of cleaning & sanitization of the places, localities andother establishments in order to stop the spread of deadly virus. Thesedevelopments can be seen as a natural instrumental measures of Global CleanupMission. We have seen when the goldprices achieve new heights suddenly prices fall down. We have also seen the sensex– BSE & NSE – showing increasing trend in consecutive days or monthsabruptly falls down to the record low, then bounce back.As per the accounting book the Asset Liability Management, Liquidity &Regulatory rules is used by the authorities at the helm of affairs to maintaina desirable level of financial health of a particular organization or acountry. To regulate the finance for the overall Global Economic impact on thepeople around the world the natural calamities and pandemic cases play animportant role. Coronavirus is less deadly than virus like Ebola & SARS butmuch higher communicable disease may have more capacity to spread on communitylevel. To control the rise & fall of fast growing economic forums ordeveloped countries the nature is acting as a regulator. From historical pointof view, at many occasions the global economy crashed by virtue of naturaldisasters, epidemic or world war incidents. The Coronovirus and SARS (SevereAcute Respiratory Syndrome) are believed to be from the same family of virusthat usually infect animals but can sometimes spread to humans as well. TheSARS outbreak in 2003 appeared from same China and spread worldwide within afew weeks. The SARS leads to a total GDP loss of $US 54 billion, affected theeconomy of China, Philippines, Malaysia, Singapore, Taiwan and Hong Kongcountries. Despite the catastrophic impact of infectious diseases such asmalaria, the epidemics has been under researched in economics. Taking intoaccount pre-COVID 19 outbreak the developed countries such as USA, China andEuropean Countries were considered the main supply chains and economicregulating authorities. The consumption of the imports from China willexperience a sharp temporary drop as seen during 2003 SARS outbreak. The risingrole of China in global market to supply commodities & raw material formanufacturing units is evident. The increasing business terms between differentcountries pushing further their respective economic target to achieve newheights were received a major set back by the outbreak. The global GDP growthis projected to drop to 2.4% in 2020 because of uncertain results ofprojections and may pick up later in the year.
Though China is claiming recovery, but will not save itsposition as the world’s largest exporter and second largest importer. As perthe figures India economy will be least affected by the epidemic mainly becauseof timely decision of lockdown and more effective response from the generalpublic. The efforts are on to minimize the collateral damage and speed up therecovery process so that human resource could be saved.
By the innovative measures in the recent Union Budget 2020on SMEs the projects like “Make in India” & “Start Ups” will get a hugeboost to overcome the set back on manufacturing, services, IT, shipping,pharmaceuticals, automobiles, mobiles, electronics, textiles etc. The WorldBank is going to support India by providing $1 billion emergency financialsupport to prevent, detect and respond to the COVID 19 pandemic. The financialsupport spread over the states & UTs will definitely improve the healthcarestructure of the country at par with other countries across the globe. Theuncertainty of annual Haj pilgrimage to the holy cities of Makkah & Madinawill have negative impact on Saudi Arabia’s revenue generation amid significantinvestment in infrastructure projects. Similarly, USA is at the top list ofcountries facing human losses by the deadly virus may have large consequenceson their economic growth trajectory.
Figures clearly indicate that there is no significantincrease in GDP (world) in the year 2020 as expected but showing a decline incoming days due to the adverse consequences of the epidemic. It also reflectsthe disruption of global supply chain and weak demand of imported goods shallremain for a complete financial year or so. Though the negative economic impactof Covid 19 is much severe when compared to other various virus outbreak due tothe fact that main sufferers could be MSMEs. The Micro, Small and Mediumenterprises have low cushion to tackle. These companies are considered asbackbone of economy of any country and could sustain the shock by extending taxconcessions, GST written off, and easy access to credit like initiatives. As wehave seen that world bodies like WHO are actively monitoring the developmentsby the outbreak on each passing day by circulating advisory and providingfinancial aid. Hence, we can say that in the process of cleaning worldatmosphere there is also a natural step for economic restructuring.