The global health crisis has created an endless list of damage. Businesses are slowing down and the global economy is being affected. Covid-19 has affected economic stability and has therefore pushed multiple businesses into a definite hole. We invite you to read this article to discover some of the consequences of Covid-19 on the global economy.
Devaluation of currencies
The Coronavirus has affected countries' currencies. Indeed, the health crisis has orchestrated multiple damages in the business world. Businesses are no longer functioning well and therefore activities are no longer running. This situation has created non-payment of taxes. The stock market went into free fall. This has caused the devaluation of currencies.
The dollar and the euro are not the only currencies used in the world. There are multiple other currencies that are used in many others. The absence of density in the stock market has affected the value of its various currencies. These have been devalued. The various countries that use these currencies have therefore experienced increased poverty. The covid-19 led to the decline of foreign exchange around the world.
The closure of several businesses
Covid-19 has led to the closure of a multitude of companies around the world. This is because the various situations caused by the virus have resulted in a lack of sales at companies. The observance of barrier measures and security measures as well as lockdowns have resulted in the absence of customers in the various companies. The companies no longer need the consistent sales figures. This has led to the closure of the companies.
This has an impact on the global economy. The closure of a company leads to increased unemployment. Also, it causes a weight on the stock market. The global economy is affected because there is a gap in the global supply chain.