The Economic Impact of COVID-19

You might have to break open your piggy banks to make it through quarantine.

The Economic Impact of COVID-19

Bailey Liebert, Producer

COVID-19 has shown to have many impacts on our world and society in general. From tiny towns like Cody or large companies like Disney, we are all long from seeing the end of this panic-inducing virus’ influence. 

The economy, especially, has taken a massive hit from coronavirus. It is estimated by the International Labor Association that $860 billion to $3.4 trillion of labor income will be lost in the world. The UN Conference on Trade and Development has projected there will be a 30 to 40 percent decrease in global foreign direct investment flows. Aside from the statistics, it is essential to look at who will suffer the greatest impact. 

According to the Center for Strategic and International Studies, the economies that are most closely connected with China (along with China itself) will take the most significant loss. This includes countries such as Japan, South Korea, and Australia. 

As far as industries go, travel-related companies are at a huge disadvantage. The International Air Transport Association expects a $63 to $113 billion dollar loss in 2020 globally for air carriers. 

The International Film Market will likely lose over $5 billion dollars. Large hotel giants have followed in the same path as Marriott International Inc., which lost about 10 percent of their earnings. Entertainment companies have also taken a major blow. For example, Disney expects at least $175 million loss from coronavirus. 

These industries are not the only ones. Restaurants, sports industries (like the NFL), and the fashion industry are all anticipated to lose millions, if not billions, of dollars. Industries not based upon social interaction, i.e., agriculture, are the least vulnerable. However, no one is entirely safe from COVID-19.

It is also vital to examine the economic impact of this pandemic on households. 

According to the International Labor Organization, 5 million to 25 million jobs will be eliminated. As for educational needs, the UN Educational Scientific and Cultural Organization foresees 1.5 billion students out of school. Adding to the stress of online schooling, the International Telecommunication Union estimates 3.6 billion people still remain offline, unavailable to participate in online education. 

The Treasury Department and the Internal Revenue Service recently announced that the government will be issuing stimulus checks to families all across America based on tax files and income. 

 

Citations:

 

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UN launches COVID-19 plan that could ‘defeat the virus and build a better world’ | UN News. 

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“Economic Impact Payments: What You Need to Know.” Internal Revenue Service, 30 Mar. 

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