Economics and Financial Implications of Coronavirus Disease (COVID-19)

Economics and Financial Implications of Coronavirus Disease (COVID-19)

Salha Ben Salem (University of Monastir, Tunisia) and Nadia Mansour (University of Sousse, Tunisia & University of Salamanca, Spain)
DOI: 10.4018/978-1-7998-4459-4.ch031
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Abstract

The strong spread of coronavirus (COVID-19) in a very short time has revised the global forecasts and the focus has revolved into economic and financial recovery. During this crisis, the stakes will depend on the combination of health and economic policy, the behavior of people, and the condition of the financial market and industries. This chapter highlights the huge economic and financial impact of Coronavirus, especially in the Eurozone and the USA, and how these governments are responding to this worst crisis. Further, it highlights the different lines of modification of the “Brexit” agreement. Finally, this chapter deals with the important effect of globalization in the context of this health crisis.
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Introduction

The Coronavirus disease (COVID-19) is an infectious disease brought about by a newfound coronavirus. This virus affects most elderly people and those with basic clinical issues like cardiovascular ailment, diabetes, chronic respiratory ailment, and cancer (World Health Organization, 2020). At the beginning of the pandemic, analysts predict that it was a health crisis and not a financial crisis. Typically, in any pandemic, the worst-case scenario implies its prolongation to cities in developing countries marked by a very high number of people, the poverty of health and financial institutions, and millions cannot afford to pay treatments available.

However, during this pandemic, there are also larger emerging and developed countries that will suffer more losses due to the loss of tourism and the strong spread of viruses. (Mansour & Ben Salem, 2020). In this sense, tourism is the act and process of spending time away from home in pursuit of recreation, relaxation, and pleasure, while making use of the commercial provision of services. As such, tourism is a product of modern social arrangements, beginning in Western Europe in the 17th century, although it has antecedents in Classical antiquity (Walton, 2018).

Currently, with the spread of its effect, the COVID-19 pandemic could be the most serious challenge to the real economy and financial sector in almost a century (PWC, 2020). As the economic fallout spreads, the government juggles concrete rules to reposition the financial sector and recalibrate the health services and the economy for the future.

Despite global efforts to avoid its spread, the COVID-19 has quickly spread from china to 213 countries and regions around the world. There are now more than 6,723 million affirmed cases of the virus worldwide and more than 393.55 individuals have died, as indicated by the World Health Organization and World-meter on 5 June 2020. In the United States and its regions, the number of affirmed cases has surpassed 1,924,760, while the death ascended more than 110,176.

Table 1.
Characteristics of most affected countries by the coronavirus disease 2019 (COVID-19) on 05 June 2020
CountryTotal casesTotal deathsMortality rate (%)Serious casesTot Cases/1M popDeaths/1M popHCI [2]
World6,724,096393,55355,45886850,5
Spain287,7427,1339,426176,15458078,68
Italy234,01333,58914,353383,5755766,59
France152,44429,05519,051,1632,33644579,99
UK281,6639,90414,166044,15158874,46
Germany184,9238,7364,726002,20810473,32
USA1,924,189110,1795,7217,0835,81633356,29
Brazil615,8734,0395,528,3182,89916069,27
Canada93,7267,6378,171,7272,48520271,84
Russia93,5588670,922,3641657,59
Iran164,278,0714,911,9581,9589651,7
China83,0274,6345,582358364,48
Japan17,0119035,3102135781,14
India227,2736,3672,88,944165567,13

Mortality rate (%)= (Total deaths / Total cases); HCI: Health Care Index

Source: World Health Organization and Worldometer

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