Nguyen chi dang 21000329 AEn6 1

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Student
name:
Nguyen Chi Dang
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21000329

AEn6

Gabriel Bryan

ASSIGNMENT DETAILS
Title:
How covid 19 affects the world’s economy

Length
Due
Date
:
date:
11/4/2022
submitted:
Home campus (where you are
enrolled):
Nguyen Tri Phuong campus

12/4/2022

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Nguyen Chi Dang


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How covid-19 affects the world’s economy
Name: Nguyen Chi Dang (Dan)
Class: AEn6


Covid-19 was a major strike that hits various platforms around the world. However, the global
economy was hit worst due to the impact of the pandemic since the ‘’great depression’’. Therefore, the
government is trying to bring back what has been lost throughout the pandemic. Multiple platforms of
the economy were devastated which can count as the GDPs. Secondly, bankruptcy has also become a
vital issue due to the outbreak of the coronavirus, and makes the multiple business enterprises go
bankrupt. Thirdly, the reduction in human resources and the lessening of workers can recall to
unemployment. Finally, tourist attractions were called off due to the outbreak, and tourism fell badly
because of the pandemic. There are various factors in the economy that were hit by the pandemic, yet
these are one of the main factors that carry the world’s economic system

The world’s GDP is an index that evaluated the world’s whole products or products by each
nation that was devastated the most. In an article by M. Szmigiera (2022), the author stated in the article
that if the virus becomes a worldwide issue, the gross domestic product (GDP) will drop at least 2.9% for
most major economies. However, when the pandemic of the coronavirus started, the article stated that
4.5% of the world’s GDPs were dropped out of economic growth. In addition, there was a total loss of
2.96 trillion U.S dollars according to the same article. At half-end of 2020, the world’s GDP falls by 2%,
and 2.5% in developing countries, the numbers were 1.8% for the industrial countries (Mattoo et al.,
2020). The world’s GDP during the outbreak was at the lowest since “The Great Depression” in 1929.

Numerous nation has to stand up and their leaderships need to be more productive to restore what has
been lost.


Another factor that was reduced badly was bankruptcy. Numerous companies, industries, and
corporations went bankrupt and vanished from the marketplace due to the impact of the pandemic. To a
reading by Jael Goldfine (2020), there were about 53 companies were closed in the U.S alone and the
number has gone up to 80 industries that went bankrupt cause of the pandemic itself. From a worldwide
perspective, bankruptcy throughout the globe was more devastated, especially in the developing
countries. However, from another perspective of Laurence Darmiento (2021), the author stated that
bankruptcy was luckily not so lagged despite the impact of covid 19 which the number of bankruptcy fell
by over 30% by 2019 in the United States alone. Nevertheless, these particular issues remain quite vital
in the underdeveloping and the industrial countries. Therefore, it needs to be re-gain rapidly.

The loss of workers in factories and corporations. When there are no workers and employees to
create products, and trade products, the economic system will fail. In correspondence to the issues, an
article by Smith et al. (2021) stated clearly that a developed country such as the United States has
dropped 21 million workers from the last of 2019 to the middle of 2020. In addition, unemployment was
tripled the number of the falling employment. Therefore, the same author also listed that employment
in ethnicity fell piercingly. When the employment rates for white’s people have decreased by about 3.2%
in 2020, Asian and Hispanic have dropped sharply by 4.8% and 4.4% in the same order. Particularly, in a
small country in Asia as Vietnam, approximately 28.2 million people between the age of 15 and above
were unemployed and negatively influenced by the third quarter of 2021 due to the income reduction,
furlough, and alternative working shifts which they had to suffer from (Smith et al., 2021). Numerous
people across the world were unemployed and not able to get a job, these are one of the keys factors
that lead to the major decrease in the world’s economy during the pandemic.

Tourist attractions are the principal income for some nations around the world or taking a large
percentage in profit for some developed countries. Mohamad Aref (2020) briefly wrote that tourism
contributes 10.3% to the global GDPs. Moreover, 1 in 10 jobs involved in tourism, and to put the number

in another perspective, that is 330 million jobs were elaborated with tourism. To stop the spread of the
coronavirus, multiple countries have applied various forms of travel restrictions and the cost of the
restriction was too much. Nevertheless, S. Lock (2022) admits that the global revenue from the travel
industry had dropped from 711.94 billion U.S dollars to 568.6 billion U.S dollars just within 2020. Along
with the issues, the industry must adapt to the situation to survive the outbreak which means has to
embrace the new technology and use it mostly on the screen as booking a hotel room. The travel and
tourism industry was struck tremendously and was in a state of alert.

In summary, some of the faces of the economy were analyzed but still more of the ideas need
to be clear in future research. The outbreak of the covid 19 which started in China has spread globally
and destroyed various factors such as health, economies, and much more that were deeply impacted by
the virus and it has collapsed the financial market. The economic system was afflicted in a tremendous


way, and hopes to recover in the past few months or even years because of the damage caused were too
vital. Leaderships between nations need to make the right decision to recover the world’s economy and
boost the stock market, the government also needs to give out the proper policy. Without the support of
the right policy, the crisis in the economy has to suffer could be worst.

REFERENCES

Goldfine, J. (2020, September 24). Here's every company that went bankrupt during COVID-19.
Jael Goldfine. < />Smith, S. M. (2021b, June 10). Unemployment rises in 2020, as the country battles the COVID19 pandemic: Monthly Labor Review: U.S. Bureau of Labor Statistics. Sean M. Smith.
/>Szmigiera, M. (2022, February 21). Impact of the coronavirus pandemic on the global economy Statistics & Facts. M. Szmigiera. />
I. (2021, March 25). How COVID-19 Impacted Travel & Tourism Industry Globally. Mohamed
Aref. />
Darmiento, L. (2021, March 27). A surge of COVID-19 bankruptcies never happened. Here’s
why. Laurence Darmiento. < />

Maliszewska, M. (2020, April 10). The Potential Impact of COVID-19 on GDP and Trade: A

Preliminary Assessment. Maryla Maliszewska, Aaditya Mattoo, Dominique van Der
Mensbrugghe. />