This case provides an overview of the cause of the Coronavirus disease (COVID-19) and its impact on the global economy. The case starts with the COVID-19 outbreak in China and describes its spread across the world. As of March 16, 2020, over 158 countries and territories globally had reported a total of 171,027 confirmed cases of COVID-19 that originated in Wuhan, China, and a death toll of 6,526 deaths. The case then deliberates the impact of COVID-19 on the global economy. The economic uncertainty the virus had sparked was likely to cost the global economy $1 trillion in 2020. World financial markets were tumbling over concerns about supply-chain interruptions from China, and about oil price uncertainty among major producers. Moreover, the travel and tourism industry across the world was badly hit by travel restrictions. The outbreak of the COVID-19 was adversely affecting global Foreign Direct Investment flows as well. The case then discusses about mitigation policies implemented by governments and central banks. Monetary and fiscal authorities in many countries had implemented fiscal and monetary measures to protect both their health systems and their economy. Governments were providing support, particularly to the sectors and workers most affected by the COVID-19 outbreak. The central banks of the US, the Eurozone, Canada, Britain, Japan, and Switzerland agreed on March 15, 2020, to offer three-month credit in US dollars on a regular basis and at a rate cheaper than usual. China had ramped up funding support for virus-hit regions and its central bank had slashed several key rates. Finally, the case discusses the future outlook of the global economy after the COVID-19 outbreak. .

Economics Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies

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Issues

The case is structured to achieve the following teaching objectives:

	Investigate how the epidemic of COVID-19 spread beyond China.
	Analyze the economic impact of the coronavirus pandemic on the global economy.
	Examine the fiscal and monetary policies implemented by various governments and central banks to protect the economy from recession.
	Assess the future outlook of the global economy after COVID-19.

Contents

INTRODUCTION

BACKGROUND NOTE ON THE COVID-19 EPIDEMIC

THE EPIDEMIC OF COVID-19 BEYOND CHINA – HOW COVID-19 SPREAD GLOBALLY

COVID-19 - IMPACTS ON THE GLOBAL ECONOMY

MEASURES TO MITIGATE THE IMPACTS

THE ROAD AHEAD

EXHIBITS

Keywords

Coronavirus pandemic, COVID-19, China, Economic Impact of COVID-19, Disruption in Supply Chain, Collapse of Stock Markets, Downfall of Global Hospitality Industry, Decline in oil price, Falling demand, Monetary and fiscal policy response

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