Answer to Question #245469 in Economics for sammy

Question

Look at the Four macroeconomics policies

i.                   Economic growth

ii.                 Unemployment

iii.               Inflation

iv.               Balance of payment

How has the Coronavirus – COVID 19 affected each of these policies in Africa? Illustrate with suitable examples.

Answer 1

While there is no way to tell exactly what the economic damage from the global COVID-19 coronavirus pandemic will be, there is widespread agreement among economists that it will have severe negative impacts on the global economy. Early estimates predicated that, should the virus become a global pandemic, most major economies will lose at least 2.9 percent of their gross domestic product (GDP) over 2020. This forecast was already restated to a GDP loss of 4.5 percent.

Young people were left unemployed by the pandemic in far greater numbers than adults, with the effects being felt worse in lower income countries.

The impact of the coronavirus on inflation is uncertain, as there are simultaneous supply and demand movements that can tilt the balance towards more inflation, disinflation, or even deflation. In the short term, despite measurement problems and the closure of markets, disinflation has dominated.

The coronavirus (COVID-19) pandemic is having significant economic and financial impacts on global trade, balance of payments and financial linkages.