The impacts of coronavirus pandemic on the global economy and the looming recession: Evidence from United States of America, European Union and China

Abstract

This research analyzes the impact of COVID-19 on the global economy with a case study of the USA, Europe and China. This study uses the secondary data obtained from WHO and the World Trade Organization (WTO) among other recognized research institutes. The data analysis approach is based on hypothesis testing, where ANOVA is used for the hypothesis testing. Time series analysis of the Gross Domestic Product (GDP) of the US, Europe and China is also done. The GDPs for the periods before and during the pandemic were forecasted using Autoregressive Moving Average (ARIMA Model). Analysis of the percentage change in GDP and the forecasts showed a clear trend of countries having a stagnating GDP from 2020 to 2022. The pandemic impacts on the GDP negatively. Closure of industries has also served a big blow to the global economy due to unemployment. Many nations across the globe have also suffered economically by restructuring their budgets and diverting reasonable amount of money towards combating the virus.