Coronavirous impacts every field of the world economy. Almost every country of the world was at the receiving end of the Covid19 pandemic. Due to lockdown, the economy is now screeched to a halt. The economy propels the growth of any country. GDP of various countries continued to show in negative quotinent, coupled with recession and high inflation rate, which jeopardized the normal life of a maximum number of people. Prolong time will be taken for the economy to reach the status quo. Impact of Covid19 pandemic on different countries was varied. The impact of the Covid-19 pandemic on the Global Manufacturing Industry is huge. COVID-19 impacts on sustainable production and operation management which has a direct impact on the industrial manufacturing sector. Manufacturing industry at high risk of a severe impact from COVID-19 pandemic. Both developed and developing countries equally affected by the COVID-19 pandemic. Below mentioned are some powerful countries and union where industrial manufacturing sectors were at the receiving end of the COVID-19 pandemic.
European Union
European Union is the second-largest economy of in the world after the USA and occupies 23% of world GDP. Now Europe is reeling under the smouldering effect of coronavirus. Epidemics coupled with lockdown jeopardized the industrial manufacturing sector completely. The supply chain was disrupted. Most of the manufacturers halted the productions to trivialise the impact of Covid19 pandemic.
The USA is the largest economy of in the world and was severely affected by the Covid19 pandemic. Industrial production reached a new low and declined by a margin of 12.7% in April 2020. Before the pandemic industrial output was trying to recover from the recession. The employment was worse impacted by the sudden decline of industrial output.
Before the onset of the Covid19 pandemic, Chinese economic growth was in delirium. During the pandemic, Chinese economic growth was 2.3%, which stunned all the leading
economies of the world. The Chinese industrial growth was less affected by Covid19, compared to the other developed countries. Industrial growth was on an upward spiral and hovering around 7.3%. Recently industrial production was slowed down due to reduced external demand. Industrial production partially depends on external demand, which is showing no sign of early recovery.
Germany is the fourth-largest economy with in the world and the largest economy of the European Union suffered a mild setback due to the Covid19 outbreak. Lockdown was
imposed during the middle of March 2020, but production houses were not closed. Authorities of a couple of companies self-imposed quarantine disrupt industrial production. The Chinese demands provide much-needed succour to the industries to avoid sharp contraction. Despite the positive impact of growing Chinese demand, the economy did not reach the pre-endemic status quo.
India the fourth largest economy in the world, massively hit by the Covid19 pandemic. Nationwide lockdown negatively impacted the GDP growth, which doused the effect of the government to become the third-largest economy in the world. From the month of January, economic recovery was observed and GDP showed positive growth of 0.4%. The IMF (International Monetary Fund) stated that India's GDP will be 12.5% during the financial year of 2022-23. The government provides succour to all sectors of the economy which is 10% of total GDP.
Africa did not feel the early tremor of the Covid19 pandemic, due to the late arrival of coronavirus into the continent. Industrial production was reduced by 25% and there is no sign of immediate recovery on the horizon. Lack of resources increases the vulnerability of most of the countries of the African continent. According to IMF 8% shrinkage of the current financial year will mar the economy and need a financial package from IMF in the form of debt relief.
Latin American continent worst affected by Covid19 pandemic. Brazil and Mexico suffered from the catastrophic effect of the Covid19 pandemic, which is potent enough to affect the neighbouring countries. Frail healthcare infrastructure of most of the African nation dealt a telling blow to the initiatives taken by the government of most of the nations. Sporadic lockdown and social distancing left a daunting impact on the economy. Most of the manufacturing sectors and tourism industries, in particular, were closed, which boosted unemployment-, which was already high. According to the latest data of UNIDO, Mexico's industrial production reduced by 4.8%. Argentina suffered the worst by 19.2% and Brazil industrial production reduced by 9.9%.
The impact of COVID-19 pandemic on the Global Manufacturing Industry can be compared to the disastrous impact of the second world war. The industrial production of both developed and underdeveloped countries suffered a setback due to Covid19 pandemic. Developing economies in Asia-Pacific region shows a negative growth of 2.5%. Latin American nations were worst affected by the pandemic. Most developed and emerging countries provided succour to different sections of the economy to recover from the deep gulf of pandemic induced recession. Despite all the initiatives taken by different countries, the world economy fails to reach the status quo. Reduction in international demand and shrinkage of the home market is the prime reason behind the woeful state of affair. Rapid recovery from the Covid19 pandemic will bring a ray of hope to the gloomy surrounding.
Keywords
Global Industrial Impact of
Covid-19
Impact of COVID-19 on the Global Manufacturing Industry, 2020,
COVID-19 impact on sustainable production and operations management,
Manufacturing Industry at High Risk of Severe Impact from COVID-19 Pandemic
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