The sharp increase in the number of people infected with COVID-19 has driven most of the world's countries to isolation and temporarily close their borders, but the time may be long and long, given the deterioration of the situation of some countries, such as Italy, France and the United States of America, which will have an inevitable impact on the global economy that began to falter since About two months after the coronavirus appeared in China.

Which we all know has a huge industrial capacity, after announcing isolation and the suspension of factories and commercial traffic, the indicators gradually started to decline, which had an impact on the trade movement from import and export.

However, this effect has deepened more after the virus entered Europe and spread globally, and with most scientific and medical laboratories declaring that the vaccine may require the appearance of at least a year, a state of mystery is formed about the fate of money and business, how will the global economy shape anymore, and are these events considered a threshold To enter the Great Depression?

Imbalance of supply and demand

Perhaps the most prominent impact on the global economy since the emergence of the coronavirus COVID-19 is the imbalance of supply and demand around the world.

In the beginning, after the outbreak of the virus in China, the markets associated with this industrialized country were affected by an increase in the increase in the disaster there, and this extended to almost all industrialized countries.

On top of them European countries as the biggest victim of the virus outbreak, in the United States of America, for example, the production chains that were supplying American companies with their products are disrupted, making nearly 75% of the supply chains of American companies stop in the last three months, and that percentage is a candidate.

To increase as the increasing number of people living with, and without complications, compulsory quarantine will affect the supply chain down to the product, and this will make the monopoly and price rises and speculation in prices is normal and showing daily in most of the world countries.

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Forced landing of airlines!

The attack launched by the Corona virus on the global economy has caused the overthrow of global economic sectors and has become threatening other, and perhaps the most important sectors that were directly affected by the spread of this virus is the aviation sector, which was already suffering before the emergence of the virus, and today it has become clear that many companies Aviation will go bankrupt.

Air travel cancellation has reached nearly 90% around the world because most of the countries infected with the virus have announced the closure of their air borders due to fears of a further outbreak of the virus; in fact, some private airlines around the world have begun layoffs, a previous measure of bankruptcy.

As for state and state-owned airlines, you will probably receive support from their countries, but they will not be in perfect condition because that will depend on the country’s economic situation. For example, in Italy, the country most affected by the number of deaths, the company, ALITALIA, has received a government rescue package of 1.3 billion Euros, however He would like to impose air traffic regionally and globally, making it difficult for the company.

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Black gold prices are falling

With the spread of the Corona virus, oil prices have tumbled to reach levels at a minimum of years. In addition to the impact of oil prices due to the outbreak of the virus, which is logical due to the lack of demand for supply, the agreement concluded years ago between OPEC countries and the group of major oil producers outside the organization collapsed.

Due to Saudi Arabia increasing its oil production, which may reach 13 million barrels per day, as it is the largest oil producer in the world, and this will surely have terrible effects on most of the oil producing countries, especially the countries whose economy is based on energy materials, particularly Russia, Iraq and Algeria, as this time R in prices will have serious implications for the global banking networks, experts believe that oil will not see a rise in the coming months due to the absence of the real motivation for it, the world is witnessing a health crisis, in addition to the oversupply in the market, all factors that will lead the biggest collapses in the capital market and business.

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All indicators are red

Around the world, red indicators shine on all screens, a stifling financial crisis in the world of finance and business, and the economic situation is not ideal, and the future appears black, because the spread of the Corona virus and its arrival in the United States of America and its spread there greatly, its results began to appear on the economic scene, and this situation evokes

What the world lived in before the Great Depression of 1929, as the current situation is threatening some companies with bankruptcy, such as airlines whose main artery has been cut, and car companies that have entered into other situations are very difficult, and we must know that most companies today lose a lot every day because of the situation A Bet most of them will be exposed to bankruptcy if not received financial support in the arena and keep Aogel demise.

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