Will the world economy collapse because of Covid-19?


Should I enter or quit the stock market? The topic of “unemployment” is now increasingly discussed, will I really lose my job? Will an economic crisis really break out?

Affected by the pandemic, the year 2020 had a very unusual beginning, allowing us to witness many historical firsts: U.S. stocks saw four automatic trading halts within one month, while such halts, known as circuit breakers, had been used only once in previous decades; it is for the first time that the Olympic Games was postponed for the reason of pandemic; all 50 states have declared a “disaster” for the first time in US history.

The pandemic is inflicting high and rising human costs worldwide. Protecting lives and allowing health care systems to cope have required isolation, lockdowns, and widespread closures to slow the spread of the virus. However, these restriction measures not only curb the spread of the virus, but also have a severe impact on the economy and employment.

As a shareholder, should I leave or continue to buy? I don’t like my job, should I leave now or for some time? Will the global economy regress? Will there be social unrest?

This article uses real data to show the relevant facts for your reference: 1. Epidemic situation; 2. Unemployment; 3. Economic impact.

A. Epidemic situation
As we move into May, the epidemic situation still can not make us overly optimistic. Globally, the overall confirmed cases have exceeded 4 million, including more than 2 million still being treated, and over 300,000 have died of the disease; from the end of March till now, the daily new confirmed cases has fluctuated around 80,000, and the mortality rate and cure rate have also tended to be stable, about 20% and 80% respectively.

The data are from WHO and the chart is made in WPS Office

The U.S., the country with the largest number of confirmed cases and deaths in the world, is facing a very grim situation. The overall confirmed cases have exceeded 1 million, and over 90,000 have died of the disease. It has accounted for a growing percentage of the global total confirmed cases.

Although the numbers of new cases and deaths continue to rise substantially, the death rate has begun to decline and level off, from a peak of 84% in mid-March to about 40% at present.

The data are from WHO and the chart is made in WPS Office

Compared with countries with similar population base, Indonesia is in better shape. By the middle of May, Indonesia has seen nearly 18,000 confirmed cases, 1,000 deaths, and nearly 4,000 recoveries.

Nevertheless, the situation in Indonesia is still grave. In late March, the daily number of new cases in this country began to surpass three figures, and continued to rise thereafter. Coupled with the disruption to the global trade caused by the pandemic, medical supplies may not be distributed and delivered in a timely manner.

The data are from WHO and the chart is made in WPS Office

B. Unemployment
With the escalation of the epidemic, “unemployment” , our top concern, has also become a hot topic. By comparing global stock markets, we can also see that the stock markets in different countries have different performances in different periods of time. In this chapter, the two key

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