Coronavirus killed the economy: the fight against COVID-19 demanded 21 trillion dollars

Coronavirus killed the economy

The world economy suffers irreparable financial losses in connection with the coronavirus. The experts estimate that combating the COVID-19 requires $21 trillion. The situation was named as the economic pain. The Australian National University analyzed the events in the economy, calculating the amount of financial losses due to the pandemic in 2020. That study was led by Professor Warwick McKibbin and Roshen Fernando.

The specialists were able to create six models of the impact of the coronavirus on the global economy. At its best, the global economy could lose up to $14.7 trillion. It is a huge blow to the economy, and such expenses are possible only if the disease can be stopped in the second half of this year.

But the scientists have applied the calculations and subsequent waves of the disease, while stating that financial losses will grow very quickly. The more waves of illness, the greater the economic loss. One of the scenarios suggests that two more waves of the virus will pass before the end of the year, and two more may occur next year.

Then financial losses will increase to 21.8 trillion dollars. There is no doubt that the COVID-19 is a serious negative shock to the global economy. The scientists have made a preliminary forecast of financial losses for the period from 2020 to 2025.

Assuming that the coronavirus has a ripple effect, it is impossible to expect stabilization of the economy, it will only constantly decrease. In the worst-case scenario, when four waves of the spread of the virus are observed over two years, the cumulative loss over five years for the whole world will amount to 35.3 trillion US dollars.

But if the disease stops before the beginning of the fall of this year, then spending will be limited to the amount of 17.5 trillion dollars. Many countries have to prepare for difficult financial trials, among them are Russia, the USA, China.