PANDEMIC IMPACTS ON THE INTERNATIONAL ECONOMY

Abstract

In the history of world development, side to formation of the economic and financial systems, temporary crashes are not new. At different times, crises have always been experienced in different countries. However, within the rise of globalization and economic interdependence, modern crises are gaining much huge effects on social and economic systems. More than half a year passed since the novel Coronavirus declared as a pandemic and virus already killed more than 900 000 people, while bringing the total number of infections to more than 28 million. Aside from widen spread of the virus, it can already be boldly said that virus has become the biggest challenge of modern reality since the World War II. The Coronomic crisis, which became actual shortly since the outbreak of COVID-19 virus pandemic, is characterized by a different anatomy due to its nature. Unlike the previous crises, which experienced well-established financial and economic basis, the current crisis is significantly different. This time, the cause the crisis haven›t financial of economic source, but the roots come from medicine. The current situation makes the economy a hostage of medicine (Papava, 2020) which is a dramatically different phenomenon from the previous crashes. Unlike the economic crises over the last decade and century, the Coronomic crisis affects many sectors of the economy. While it puts into the agenda necessity of rethinking existing policy on international trade, production chain and generally structure of the economy. This requires in depth research, which is the aim of this article. Without vaccine and effective clinical treatments agains the virus, social distancing remains the only recommended tool agains the virus. The latter is a significant challenge for the modern economy. The current situation, in addition to the necessity of rethink economic policy also puts into the agenda the issue of establishing new trends in the international trade and economy. The reality in the post-pandemic period, which may lead to changes in the international supply chain and a new dealing out of the supply market, will lead to significant changes in the international economy that requires in-depth research and analysis. The aim of the paper is to analyze some of the above issues, which will be presented on the based of existing empirical data.