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Coronavirus: A visual guide to the economic impact | Coronavirus: A visual guide to the economic impact |
(2 months later) | |
The coronavirus pandemic, which was first detected in China, has infected people in 188 countries. | |
Its spread has left businesses around the world counting costs and wondering what recovery could look like. | |
Here is a selection of charts and maps to help you understand the economic impact of the virus so far. | |
Global shares in flux | |
Big shifts in stock markets, where shares in companies are bought and sold, can affect the value of pensions or individual savings accounts (ISAs). | Big shifts in stock markets, where shares in companies are bought and sold, can affect the value of pensions or individual savings accounts (ISAs). |
The FTSE, Dow Jones Industrial Average and the Nikkei all saw huge falls as the number of Covid-19 cases grew. | |
The Dow and the FTSE saw their biggest quarterly drops in the first three months of the year since 1987. | The Dow and the FTSE saw their biggest quarterly drops in the first three months of the year since 1987. |
In response, central banks in many countries, including the UK, slashed interest rates. That should, in theory, make borrowing cheaper and encourage spending to boost the economy. | |
Global markets have since recovered some ground as governments have intervened. But some analysts have warned that they could be volatile until fears of a second wave of the pandemic are eased. | |
More people seeking work | More people seeking work |
Many people have lost their jobs or seen their incomes cut due to the coronavirus crisis. | |
Unemployment rates have increased across major economies as a result. | |
In the United States, the proportion of people out of work has hit 10.4%, according to the International Monetary Fund (IMF), signalling an end to a decade of expansion for one of the world's largest economies. | |
Millions of workers have also been put on government-supported job retention schemes as parts of the economy, such as tourism or hospitality, came to a standstill under lockdown. | |
However, the data differs between countries. France, Germany and Italy provide figures on applications, for example, whereas the UK counts workers currently enrolled in the scheme. | |
But there have since been some signs of recovery in the global jobs market. | |
China and France, for example, have seen increases in hiring rates as shutdowns eased, according to networking platform LinkedIn. | |
Some experts have warned, however, it could be years before levels of employment return to those seen before the pandemic. | |
Risk of recession | Risk of recession |
If the economy is growing, that generally means more wealth and more new jobs. | If the economy is growing, that generally means more wealth and more new jobs. |
It's measured by looking at the percentage change in gross domestic product, or the value of goods and services produced, typically over three months or a year. | It's measured by looking at the percentage change in gross domestic product, or the value of goods and services produced, typically over three months or a year. |
But the IMF says that the global economy will shrink by 3% this year. It described the decline as the worst since the Great Depression of the 1930s. | |
Although it said that the coronavirus has plunged the world into a "crisis like no other", it does expect global growth to rise to 5.8% next year if the pandemic fades in the second half of 2020. | Although it said that the coronavirus has plunged the world into a "crisis like no other", it does expect global growth to rise to 5.8% next year if the pandemic fades in the second half of 2020. |
That's driven primarily by growth in countries such as India and China. | |
Recovery in big, services-reliant, economies that have been hit hard by the outbreak, such as the UK or Italy, is expected to be a slow process. | |
Travel among hardest hit | Travel among hardest hit |
The travel industry has been badly damaged, with airlines cutting flights and customers cancelling business trips and holidays. | The travel industry has been badly damaged, with airlines cutting flights and customers cancelling business trips and holidays. |
Many countries introduced travel restrictions to try to contain the virus. | |
Data from the flight tracking service Flight Radar 24 shows that the number of flights globally took a huge hit in 2020. | |
But as the spread of infections has eased in some areas, the industry has started to open back up. | |
Spain, for example, has reopened its borders to visitors from most of Europe without having to quarantine. For months it was under one of Europe's toughest lockdowns. | |
Travel companies also said that bookings from the UK had "exploded" after the government announced current restrictions will be eased. | |
Oil price recovery | |
Demand for oil all but dried up as lockdowns across the world kept people inside. | |
The crude oil price had already been affected by a row between Opec, the group of oil producers, and Russia. Coronavirus drove the price down further. | |
Brent crude is the benchmark used by Europe and the rest of the world. Its price dipped below $20, to the lowest level seen in 18 years. | |
Prices have recently regained ground as travel restrictions in some countries have been relaxed, boosting demand for fuel. | |
Consumer confidence | |
Retail footfall also saw unprecedented lows as shoppers stayed at home in a bid to stop the spread of Covid-19. | |
Pedestrian numbers have since risen as lockdown measures have been rolled back, according to research firm ShopperTrak, | |
Separate research suggests that consumers might still be feeling anxious about their return to stores. | |
More than half of UK customers expect they will now go shopping less often over the next one or two years, according to a survey of more than 1,000 people by accountancy giant EY. | |
Vaccine hopes | |
Governments around the world have pledged billions of dollars for a Covid-19 vaccine and treatment options. | |
A number of pharmaceutical firms are in a race to develop and test potential drugs that could help nations get back to "normal". | |
Shares in some companies have shot up on the hopes that some will be approved and distributed at scale. | |
AstraZeneca's share price, for example, has hit record highs. The Drug company says it will be able to produce two billion doses of a vaccine. | |
"Until such medical interventions become available, no country is safe," the IMF said of the pandemic that has disrupted the global economy. |