IMPACT OF CORONAVIRUS (COVID-19) ON THE GLOBAL ECONOMY

Abstract

The COVID-19 pandemic and associated lockdowns have hit the global economy and affected the basis of the socio-economic and business models, which have already undergone some complex changes. Industrialized countries are witnessing a steady decline in interest rates and GDP growth rates, possibly due to medium-term demographic and technological changes, a growing demand for savings assets, and increasing divergences between individuals, firms, and regions. In conditions of the demographic transition, pension provision and health care are placing an additional burden on the state budget. These trends are increasingly restricting monetary and fiscal policy to stabilize the economy in the event of adverse shocks. On the technological side, the digitalization of consumption and production requires structural adjustments in various areas in order to remain competitive and create new opportunities for displaced jobs. For a number of years, globalization has been facing serious obstacles associated with growing protectionism and skepticism about the universal benefits due to ever-increasing international trade and financial integration. The article focuses on the interaction of these trends and the shock caused by COVID-19. International economics and economic policy deal mainly with macroeconomic, trade and technological aspects. The article concluded that measures to restore the economy should be comprehensive, not limited to individual areas.