US oil rebounds Photograph:( AFP )
Economies across the globe are struggling to cope with the fallout of coronavirus crisis.
Nations across the globe have witnessed severe impact of the coronavirus pandemic on their economy.
A report by the United Nations Department of Economic and Social Affairs has projected that the world economy is set to lose nearly $8.5 trillion over the next 2 years. COVID-19 is likely to push more than 34 million people into extreme poverty, the report further said.
The total number of coronavirus cases has increased to over 6.6 million, claiming more than 390,000 lives. Economies are struggling to cope with the fallout of the crisis.
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Here are five worst-affected sectors:
After nearly two-thirds of the world went into lockdown to contain the spread of coronavirus, the demand for oil fell by over 30 million barrels per day.
In April 2020, US oil prices collapsed to a historic low, close to minus $37 per barrel. Oil has recovered as most countries have lifted lockdowns, but oil remains on the slippery ground.
Prices are expected to touch at least $40 dollars per barrel by the end of the year if a second wave doesn't force more lockdowns.
The pandemic has smashed the automobile sector like never before. Global auto sales are expected to fall by 20 per cent in 2020.
It may also take some time before the car manufacturing units go on full steam with a full roster of workers.
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The first measure governments adopted to stop the spread of the virus was stopping air travel. Global air passenger traffic plunged 94 per cent in April.
Airlines across the world have reached out for relief. Leading aircraft makers, Boeing and Airbus, have cautioned their respective governments that they may fold up if no help arrives.
Several countries have restarted domestic flights now and international air travel is also expected to resume in mid-June, but the turbulence will remain for a while.
International tourism could decline by 60 to 80 per cent this year, resulting in a revenue loss of over one trillion dollars.
Many countries are wholly-reliant on tourists to drive their economy. It's one of the most labour-intensive industries in the world and over 100 million jobs are at risk.
Over the last two months, luxury goods sales have slipped by close to 80 per cent. The industry took a major hit after e-commerce platforms deemed luxury goods deliveries as non-essential.
Nearly 40 per cent of the luxury goods in the world are manufactured in Italy which was one of the severely-affected countries. And thus, fashion brands lost their manufacturing base.
Some countries are opening malls, but the industry will have to wait to see its fortunes revive.