Economic Impact of Coronavirus and Revival Measures:: Way Forward for Pakistan

Abstract

The spread of Coronavirus (COVID-19) has jolted the world economy suspending business activities and forcing millions of people to stay at home. According to estimates, COVID-19 crisis would leave 25 million unemployed in Pakistan pushing millions towards hunger and poverty. Sectors like tourism and travel, stock markets, entertainment, manufacturing etc. are the worst hit. The global economy projection is 2.9% to 2.4% while China’s economic forecast has been downgraded from 6.1% to 4.9% (Organization for Economic Cooperation and Development [OECD] 2020). The world GDP growth is expected to decrease from earlier projection of 2.9% to 2.4%. European Union will be the most affected in terms of trade loss due to COVID-19 which is estimated as $ 15,597 million (United Nations Conference on Trade and Development [UNCTAD] 2020). The United States is the second most affected country with trade impact of $ 5,779 million. India also falls among top 15 affected countries with trade impact of $ 348 million. Chemicals sector, textile and apparel, automotive, electrical machinery, leather products, metals & metal products, wood products, and furniture are the sectors, which received a severe blow in India.