The impact of COVID-19 to the economy in

the world

NAME : FAHIRA NUR ASMI

CLASS : INTERMEDIATE
INSTRUCTOR : MR. RHEVI

AFFORD INTERNATIONAL ENGLISH COURSE

TANJUNGPINANG
2024
 PREFACE

First of all, let me thank to ALLAH who has given me health and blessing.
So that I can finish this composition timely.
Secondly, my gratitude goes to my parents who give me endless love and
support me to get a good education. And don’t forget i thank my teacher Mr.
Rhevi who has been teaching and giving some of his knowledges to teach me.
Finally, I hope this composition will be useful not only for myself but also
for readers, thankyou/

Tanjungpinang, 10 February 2024

(fahira nur asmi)

TABLE OF CONTENTS

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PREFACE............................................................................................................................i
TABLE OF CONTENTS..................................................................................................ii
BACKGROUND...............................................................................................................iii
chapter i..............................................................................................................................1
1.1. The beginning of corona virus..........................................................................1
1.2. why is it called “covid 19 "?.............................................................................1
1.3. corona virus variants …………………………………………………………...…..2

CHAPTER II........................................................................................................................3
2.1 the impact of the economy in the world............……………………………………………3
2.2. the positive impact of covid 19 pandemic............................................................4
2.3 how does the government overcome the negative impact of covid 19…………….5

CHAPTER III....................................................................................................................6
3.1. CONCLUSION......................................................................................................3
3.2. SUGGESTION......................................................................................................3

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BACKGROUND

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 CHAPTER I
1.1. The beginning of corona virus
COVID-19 first appeared on a small scale in November 2019 with the first
large cluster appearing in Wuhan, China, in December 2019. It was first
thought that SARS-CoV-2, the virus that causes COVID-19, made the jump to
humans at one of Wuhan, China’s, open-air “wet markets.” Wet markets are
partially or fully open-air markets that sell fresh produce and meat. China's in-
country World Health Organization office learned of multiple pneumonia cases of
unknown cause with symptoms such as fever and shortness of breath that seemed
to be connected to the market.

As COVID-19 spread both inside and outside China, it infected people who
had no direct contact with animals. That meant the virus was transmitted from one
human to another. Its spread continued to the U.S. and around the globe, where
people unwittingly caught and passed on the virus. The worldwide transmission
caused a pandemic to be declared on March 11, 2020, by the World Health
Organization.

1.2 Why is called “ COVID-19 “

The World Health Organization (WHO) has decided to name the disease
caused by the novel coronavirus "COVID-19" and refers to the virus that causes it
as the "COVID-19 virus." CO for corona, VI for virus, D for disease, and 19 for
the year the outbreak was first recognized, late in 2019. Separately, the
Coronavirus Study Group of the International Committee on Taxonomy of
Viruses has named the new virus severe acute respiratory syndrome-related
coronavirus 2, or SARS-CoV-2; however, this name has generated controversy in
the public health and infectious disease community. Some feel the name could

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lead to confusion with the disease SARS, which is caused by a related, but
distinct, type of coronavirus.

1.3 Corona virus variants

THERE ARE :

1. ALPHA

Alpha (B.1.1.7) was the first of the highly publicized variants. Alpha first
appeared in Great Britain in November 2020 and infections surged in
December of that year. It soon surfaced around the world and became the
dominant variant in the U.S., where the CDC classified it as a variant of
concern. Then, Alpha faded away with the rise of the more aggressive Delta
variant.

2. DELTA

Delta (B.1.617.2) was first identified in India in late 2020; it soon spread
throughout the world, becoming what was the predominant version of the
coronavirus—until Omicron took its place in mid-December of 2021.

3. BETA

This variant, or B.1.351, was identified in South Africa at the end of 2020 and
spread to other countries. Experts had been concerned about its several
mutations and its potential to evade antibodies. Beta was not common in the
U.S.

4. OMICRON

Omicron and its subvariants have ranked as the predominant SARS-CoV-2

strains in the U.S. for almost two years now. While the original Omicron strain
(BA.1) is no longer circulating, Omicron subvariants are now driving most of
the country’s SARS-CoV-2 infections. Omicron was first identified in
Botswana and South Africa in late November 2021, and cases quickly began to
surface and multiply in other countries.

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 CHAPTER II
2.1. The impact of the economy in the world
The COVID-19 pandemic sent shock waves through the world economy and
triggered the largest global economic crisis in more than a century. The crisis led
to a dramatic increase in inequality within and across countries. Preliminary
evidence suggests that the recovery from the crisis will be as uneven as its initial
economic impacts, with emerging economies and economically disadvantaged
groups needing much more time to recover pandemic-induced losses of income
and livelihoods.1

In contrast to many earlier crises, the onset of the pandemic was met with a large,
decisive economic policy response that was generally successful in mitigating its
worst human costs in the short run. However, the emergency response also created
new risks—such as dramatically increased levels of private and public debt in the
world economy—that may threaten an equitable recovery from the crisis if they
are not addressed decisively.

Worsening inequality within and across countries

The economic impacts of the pandemic were especially severe in emerging
economies where income losses caused by the pandemic revealed and worsened
some preexisting economic fragilities. As the pandemicunfolded in 2020, it
became clear that many households and firms were ill-prepared to withstand an
income shock of that scale and duration. Studies based on precrisis data suggest,
for example, that more than 50 percent of households in emerging and advanced
economies were not able to sustain basic consumption for more than three months
in the event of income losses. Similarly, the average business could cover fewer
than 55 days of expenses with cash reserves. Many households and firms in
emerging economies were already burdened with unsustainable debt levels prior
to the crisis and struggled to service this debt once the pandemic and associated
public health measures led to a sharp decline in income and business revenue.

The crisis had a dramatic impact on global poverty and inequality. Global poverty
increased for the first time in a generation, and disproportionate income losses
among disadvantaged populations led to a dramatic rise in inequality within and
across countries. According to survey data, in 2020 temporary unemployment was
higher in 70 percent of all countries for workers who had completed only a
primary education. Income losses were also larger among youth, women, the self-
employed, and casual workers with lower levels of formal education. Women, in
particular, were affected by income and employment losses because they were

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likelier to be employed in sectors more affected by lockdown and social
distancing measures.

Similar patterns emerge among businesses. Smaller firms, informal businesses,

and enterprises with limited access to formal credit were hit more severely by
income losses stemming from the pandemic. Larger firms entered the crisis with
the ability to cover expenses for up to 65 days, compared with 59 days for
medium-size firms and 53 and 50 days for small and microenterprises,
respectively. Moreover, micro-, small, and medium enterprises are
overrepresented in the sectors most severely affected by the crisis, such as
accommodation and food services, retail, and personal services.

The short-term government responses to the crisis

The short-term government responses to the pandemic were extraordinarily swift
and encompassing. Governments embraced many policy tools that were either
entirely unprecedented or had never been used on this scale in emerging
economies. Examples are large direct income support measures, debt moratoria,
and asset purchase programs by central banks. These programs varied widely in
size and scope , in part because many low-income countries were struggling to
mobilize resources given limited access to credit markets and high precrisis levels
of government debt. As a result, the size of the fiscal response to the crisis as a
share of the gross domestic product (GDP) was almost uniformly large in high-
income countries and uniformly small or nonexistent in low-income countries. In
middle-income countries, the fiscal response varied substantially, reflecting
marked differences in the ability and willingness of governments to spend on
support programs.

2.2 Positive impacts of covid -19 pandemic

1. Helps you Build Genuine Relationships

We all have been so busy living the ‘life,’ many of us have lost those real,
genuine moments we have with our loved ones. It could have been the
busy schedules, running around to make ends meet, and rushing to be in
urgent meetings.

2. A New Wave of Tools & Software

Companies are in need of tools & software that can help you
Make this shift to digital classrooms & virtual office spaces seamless

3. Lifestyle Changes to Practice Better Hygiene

Being hygienic is no longer just a good habit, but the very skill you need
for survival. Times have changed, and people are now aware of how
important it is to keep yourself clean. As social animals, the very

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 engineering of humans is the ability to emote & connect with fellow
beings. That’s not going to change, and that’s something we cannot
change. But these recent times have made us all aware of how to do that
more hygienically.

4. Innovations to Stay Connected & Help Each Other

This period welcomes ideas, hacks, tips, & tricks to beat the lockdowns, work
from home & help our communities. Companies across the world are thinking
about product & service ranges that enable you to be as connected as possible
with your teams and also your loved ones. Finding creative ways to not let the
boredom of four walls get to you is the newest trend and rightfully so!

2.3 How does the government overcome the negative impact of

Covid –19.
He economic, fiscal and social impact of the COVID-19 crisis on territories is
differentiated, and its diverse risks very greatly depending on location. This
regionally differentiated impact calls for a territorial approach to policy responses
on the health, economic, social, fiscal fronts, and for very strong inter-
governmental coordination.

Many governments at all levels have reacted quickly. A combination of national

and subnational measures contribute to an effective response to the COVID-19
public health and economic crisis. Leadership and coordination by national
government is critical. Subnational governments – regions and cities – have also
launched a wide range of actions to manage the public health and economic
impact . Effective coordination mechanisms among levels of government are
essential. “Strong coordination between all actors in charge of the response at
central and regional levels is the basis of an effective response

On the health front, many countries have adopted territorial approaches, for
example on policies surrounding masks or lockdowns. On the economic front,
governments have provided massive fiscal support to protect firms, households
and vulnerable populations. They have spent more than USD 12 trillion globally
since March 2020. Many countries, and the EU, have reallocated public funding
to crisis priorities, supporting health care, SMEs, vulnerable populations and
regions particularly hit by the crisis. In addition, more two thirds of OECD

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countries have introduced measures to support subnational finance – on the
spending and revenue side – and have relaxed fiscal rules.

CHAPTER III

3.1. CONCLUSION
3.2. SUGGESTION