At present, any failure can be explained by the coronavirus pandemic. Undoubtedly, the deadly virus has become a major challenge for the whole world. However, the social and economic impact of the COVID-19 crisis on each country is different.
According to research firm IHS Markit, the spread of infection in the United States and the European Union has dealt the heaviest blow to the global economy. Problems in these regions have brought it to a near halt.
Once the situation got out of control,the US and European authorities had to take emergency actions. As a result, they introduced tough restrictions, which had a devastating effect on the economy. Moreover, the second wave of the pandemic forced the governments to impose a new lockdown, which could push the world economy to the verge of collapse.
"Even countries with early successes in combatting the disease have had to reimpose restrictions on restaurants, bars, and other gathering places," IHS Markit said in the latest report. According to its forecasts, global GDP could contract by 4.2% at the end of 2020.