THE IMPACT OF THE CORONAVIRUS ON THE SUSTAINABLE DEVELOPMENT OF THE GLOBAL ECONOMY

ABSTRACT

The sustainable development of the global economy is affected by the spread of coronavirus infection. This creates threat to the economy and the functioning offinancial markets. Recently, there has been a fall in markets (especially the oil market), which could lead to the onset of the Great crisis. The spread of the pandemic affects almost all states and the entire economic system because today's world economies are highly interconnected and very dependent on each other. We think that the global economy will slow down, and the economic growth will decline. The gradual spread of the virus around the world will be negatively affected to investors. The situation is getting more complicated as most of the big investors have made very large investments before the start of the pandemic. Clearly, the epidemic causes significant problems in existing economic life and it will continue for a long time. Damage caused by this epidemic could lead to a decline in GDP growth and even a sharp increase in bankruptcies of countries. In some countries, the post-coronavirus period will lead to a severe crisis and even economic disaster. Despite all this, the epidemic does not affect the demand for physical goods (rather, it even increases it);does not affect production capacity;does not affect labour resources (the percentage of dying people of working age is much less than the percentage of dying elderly people). As a result of quarantine measures, transport companies, hotels and travel agencies will suffer losses. Moreover, the spread of coronavirus infection negatively affects the stability of the banking system. The spread of the virus affects not only the export, but also the local demand. Enterprises that provide catering services (in turn, home delivery of meal and food) will benefit from spread of virus. The economy is mainly based on emotions. People's distrust and fear caused by virus, also means that high precaution can continue even after official prohibitions and restrictions are already lifted. In the medium term, the effect of the virus will depend on how far it spreads and how long it takes until a vaccine is found and the situation normalizes.