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The economic impact of COVID—19 has been really immense over the countries that are affected by the pandemic. As per the officials the impact could be in any of the following three ways: - Production being affected directly, creation of disruption in the market and the supply chain, having a financial impact over the financial markets or the firms.
 
The first way of affecting the economy by hampering the production is clearly proved in the Hubei province of China, where the pandemic first erupted. There was shutdown of production units as the spread of the Coronavirus went out of control causing a greater number of casualties and increasing the number of deaths in the country. The demand from China had also reduced as the pandemic started spreading rapidly thus causing a reduction in the production. This has immensely affected the economy as well because of the narrow down of exports from the country.
 
The second way in which the economy is affected was through the disruption caused in the market as well as the supply chain. There are many manufacturing firms which depend on China and other Corona affected countries for various intermediate products. Thus, as there was lockdown in most of the affected countries the supply chain was also affected badly causing a delay in reaching the product to the suppliers as well as consumers.
 
The third channel through which the global economy is affected is through the financial impact occurred because of the infection over the financial markets or the firms. Traders have been affected worsely due to the falling share value which they couldn’t predict due to the sudden impact created by the pandemic. This has weakened the trust of traders for investing in stock markets which would further result in hampering the economy.