The economic impact of the COVID-19 pandemics is still being felt around the world. Not only the health costs but also the direct and indirect effects of the outbreak on the global economy are still being analyzed by authorities and businesses. The SARS-CoV-1 virus was declared an epidemic last year but the economic impact of this epidemic was underestimated.
The financial burden and the economic impact of these diseases can be estimated as well depending on which type of virus is involved. The COVID-19 virus caused a huge economic impact not only in China but around the world due to its global spread and the impact it had on the economy. The spread of the virus as well as the subsequent outbreak and its devastating effects on the economy resulted in many governments across the world in putting in place measures to contain the virus and stop further outbreaks.
The economic impact of the SARS pandemic on the Chinese economy resulted from the increased cost of healthcare and the resulting loss in productivity. As the SARS virus spread all over the world, concerns have turned towards supply-side problems and lowered business in the service sector as a result. The government was forced to spend more money to ensure that there would be enough hospitals and healthcare facilities available for the affected area and as a result the cost of healthcare for the region was higher than normal.
As far as the direct effects of the economic impact are concerned, it is important to note that even though China is dealing with the COVID epidemic, the impact on the country’s exports is minimal. The direct impact of the pandemic on the Chinese economy is the decline of exports of some products. This decline was due to the lower demand of the Chinese people who were suffering from the disease. However, the most significant impact on the economy is the reduction in foreign trade, which has resulted in a drop of GDP growth for the country.
The indirect economic impact of the pandemic can be attributed to the fall in the country’s GDP. The decreased imports and exports caused by the outbreak has caused a decrease in the amount of capital that can be used for exports. and a reduction in the income of the Chinese people as they are unable to make necessary purchases of basic commodities.
However, although the economic impact of this epidemic has been very negative, it does not necessarily mean that the outbreak caused a death sentence for the Chinese economy. The economic impact of the COVID-19 has been felt through increased awareness of the problem by many people around the world and increased spending power by the Chinese people. With this in mind, the Chinese government will work hard to ensure that this outbreak does not affect the country’s export-oriented economy and that the affected region remains healthy and productive.
