Tony, G10, RDF International School

Up to now, over 200 countries show the presence of COVID-19, and over 4 million people are infected.

In order to control the contagion of COVID-19, governments around the world took various measures including social distancing and quarantine, which also resulted in a global economic recession.

In terms of the economic situation in China, thousands of businesses and industries are affected by the plague.

The social distancing and quarantine measures prevent infection but cause a daily visitors’ flow rate decrease.

Consumer spending, business investment, and net export all showed a decreasing tendency in the first quadrant.

Tourism and offline industries are the main fields that have been severely impacted. Middle and small enterprises can’t exist with such a long rest without the government’s subsidy.

In order to prevent many firms from going out of business, the Chinese government has to distribute subsidy to most middle and small firms.

Also, there is another way to support the small enterprise as the daily number of infected people decreases. The government can start to announce that all the enterprises can return to work and resume production.

When it comes to the global economy, in the early period there were some predictions stating that the virus would cause a global pandemic and have a harmful effect on the global economy, especially on the stock market.

Till now, the trade on the stock market was stopped for four times. Europe and the U.S. became the main affected areas during the plague. To prevent further deterioration of global economics, every country’s government might be supposed to provide subsidies and lower interest rates, keep intermediate goods trade with other countries while at the same time restricting infected people from cross-border entry.

Also, the government can provide more subsidy on medical material manufacturing and encourage more large enterprises to transition to produce medical products.

It is expected that driven by various stimulating measures, the economic growth in the third and fourth quarters will recover faster, and the stability and recovery of the Chinese domestic economic situation will help make China the main drive of global economic recovery.