Answer to Question #196463 in Macroeconomics for Graylin Lapi

Question

Identify the impact of Corona virus outbreak on economic growth, trade and human welfare. Discuss possible options for economies in the Pacific to deal with its potential threats. According to the question above, write about the literature concerning this question.

Answer 1

Corona Virus has been a pandemic that has affected the Pacific economic growth, trade, and human welfare. The decrease in number of investors and consumers has been a significant effect on the pacific. The global demand has declined, affecting the people dependent on export and other commodities. Pacific depends more on export of fish, tourism, and hospitality. Due to corona virus the economic setting has been disrupted, number of tourists have significantly reduced due to movement restrictions, hospitality which relies a lot on tourisms has been affected, and the transport system too has been affected by the pandemic.

The Pacific to be able to deal with the potential threat, needs to allocate the enough resources on the major affected sectors such as hospitality and tourism, to help and revive the economy. The government can support the people who are vulnerable and are much affected by the pandemic to adapt with the new environment