The Covid-19 pandemic occurred due to an infectious disease caused by the Coronavirus Sars-COV-2. It began to spread in the city of Wuhan, in China, at the end of 2019, and quickly extended to other parts of the world. Given this, the World Health Organization declared a global pandemic on March 11, 2020.
Pandemia has had a significant impact on the world economy, due to social distancing measures and closure of businesses that have been implemented to stop the spread of the virus. As a consequence of this, many governments and companies have implemented measures to help affected people, such as financial assistance and mental health services.
The impact of pandemic on financial markets
The Covid-19 Pandemia has had a significant impact on financial markets around the world. At first, the uncertainty caused by the outbreak of COVID-19 led to a significant fall in actions, bonds and raw materials. Emerging markets and values markets in countries most affected by pandemic, such as China, Italy and Spain suffered a greater fall.
The Central Bank and the governments of many countries have taken measures to stabilize financial markets, such as reducing interest rates, injecting liquidity into the market and establishing asset purchase programs. These measures have helped to calm the markets and to stabilize prices.
In the real estate sector, some markets have experienced a price decrease due to the economic uncertainty caused by the pandemic, while others have experienced stability or an increase in prices due to an increase in the demand for housing as people look for additional space to work and study from home.
Economic consequences of COVID-19 3 years later
The Covid-19 Pandemia has had a significant impact on the world economy, causing an economic recession in many countries. Pandemia has led to a lot of layoffs and reduction of working hours worldwide, since many companies have been forced to close due to social distancing measures, even today many of the people who lost their work for the COVID-19 are still unemployed.
In addition to this, GDP has fallen significantly in many countries due to the decrease in economic activity and loss of employment. Many governments and companies have borrowed money to cover their expenses during pandemic, which has led to an increase in indebtedness worldwide, doing this that poverty and economic inequality have increased in many countries due to loss of employment and income.
Although despite this panorama, many governments have also launched recovery plans that will not only help their countries to recover, but they can also have a stronger economy to face similar situations in the future. Something that shows that despite everything negative, COVID-19 will help many economies to strengthen and grow to be more resistant in the future.