The World Economic Forum published its 20th Global Competitiveness Report and the impact of the COVID-19 outbreak on the global economy was evaluated in the report. In addition, the report compared the effects of the epidemic on developed and developing economies.
The coronavirus epidemic, which infects more than 84 million people worldwide and killed more than 1.8 million people, has not only negatively affected daily life. The epidemic has also shaken the economy and financial markets around the world very deeply.
So, what was the impact of this epidemic on the world economy? The World Economic Forum published a research on the economic effects of the COVID-19 outbreak in its 20th Global Competitiveness Report. The survey, covering the period February 2020 – June 2020, included 126 economies from 11,866 businesses around the world. So what do the results of the research offer?
Economic impact of the COVID-19 pandemic
(The impact of COVID-19 on developed economies)
Research data focused on comparing the effects of COVID-19 on developing economies compared to developed economies. The research was concluded by comparing the 2020 data with the last three years. So, what are the results obtained at the end of the research?
It turned out that there was a decline in competition in developed economies and cooperation between companies. Of course, employment rates were also negatively affected. Many people lost their jobs during the epidemic. It was stated that one of the main reasons for the decline in competition in developed economies may be the excessive use of digital platforms.
(The impact of COVID-19 on developing economies)
With the epidemic, people turned to shopping from online platforms, which naturally increased the revenue rate of e-commerce sites. Companies like Amazon in particular have experienced huge increases. While developed economies suffered from falling in competition and providing employment problems, developing countries had to grapple with different problems.
According to the published report, economies declined due to increasing inflation in developing countries. In addition, an increase in crime rates in these countries was observed. It was stated that with the outbreak, the crime rate increased compared to 2018 and 2019. According to the World Economic Forum, these rates will increase for the better when the COVID-19 outbreak is brought under control.