Short communication: 2021 Vol: 22 Issue: 4S
Thomas Abate, Walden University
Citation Information: Abate, T. (2021). Covid-19 effects in economics education system in the world. Journal of Economics and Economic Education Research, 22(S4), 1-2
The economic impact of the COVID-19 epidemic is expected to be far greater than anything observed since the 2008/09 financial crisis. COVID-19 has already had a large distribution. The human cost, and with public health systems in a state of flux these costs will continue to rise in order to cope. The regulations Governments have put in place measures to limit the transfer of information. COVID-19 has resulted in a significant response in many nations. Supply and demand shocks As a result, tremendous progress has been made. Disruptions in trade, commodity price declines, and the many countries' financial conditions are tightening. As a result of these consequences, there have already been significant increases in Unemployment and underemployment rates will continue to rise. It will continue to threaten the survival of many firms worldwide.
Covid-19, Economics, Policy Problems, Macroeconomic Policy, Epidemic.
The epidemic will pose serious fiscal policy problems. While there are other aspects to macroeconomic policy, this short concentrates on fiscal policy, which will have the biggest and most immediate impact on education funding. As a result of the epidemic, government revenues are expected to decline due to decreased economic activity Antara (2020). Given that many nations' budgetary flexibility is already restricted, there is a risk that policy responses to the crisis may either be insufficient or aggravate macroeconomic conditions. Because of decreased economic activity, are expected to fall as a result of the epidemic. Many governments already have little fiscal space. The anticipated overall economic impact of the COVID-19 pandemic is a source of substantial uncertainty. Its duration and severity will be determined by the success of steps to stop the virus from spreading, as well as how soon economic activity, trade, and financial markets and commodity prices can be stabilized. The immediate result will very certainly be a slowing or reversal of economic growth and poverty alleviation. The longer-term picture, on the other hand, is unknown.
Actions done to restrict the spread of COVID-19 are expected to result in a significant reduction in world output. According to current projections, real GDP will fall in most income levels and regions by 2020 (ILO, 2020). Low-income countries are anticipated to defy the trend and grow, but at a slower pace than before the COVID-19 epidemic Ferreira and Schady (2009). These averages by income group and region hide disparities between countries due to the structure of their economies and their exposure to COVID-19-related shocks. Large commodity exporting countries such as Angola, Brazil, and Nigeria, for example, are likely to see negative economic growth due to huge declines in commodity prices Martin and Kyrili (2009).
Even if economic growth is predicted to resume in 2021, education spending is expected to remain flat in most nations and shrink in others. The majority of estimates indicate that economic growth will pick up significantly in 2021. Government spending growth, on the other hand, is expected to decelerate and, in some circumstances, turn negative, according to estimates. If education's percentage of the overall budget remained unchanged, the net effect of these competing trends on education spending would be ambiguous. Education spending would continue to rise in some areas, although at a much slower rate than before the pandemic.