The Impact of COVID-19 on global supply chain spectrum
Global economic growth
Although the Chinese economy has faced a decline by 2% growth rate during the previous two years but it is still playing a pivotal role in the global economy, as the second largest economy after the US economy, and as the largest exporter economy for manufacturing goods and a major trading partner for world countries (World Bank, 2020b). The growth of the global economy witnessed a slowdown even before the emergence of the Covid-19 pandemic due to the challenges it faces and represented in trade tensions between China and the United States of America, and political and political risks, as well about the fluctuating conditions in some countries of the world (UN, 2020). Multinational companies had lowered their forecasts on global economic growth before the outbreak of the Covid-19 epidemic. For instance, the International Monetary Fund revised its forecast from 3.3 % to 3.2 % in 2020 following the emergence of Virus (IMF, 2020), while it is currently moving to amend these expectations after the spread of the Covid-19, taking into account its impact on the negative side of global supply and demand, especially after the slowdown in the determinants of global demand represented by the slowdown global consumption and investment (OECD, 2020).
In addition to the movement of international trade that has been paralyzed after countries close their borders, and restrict the movement of goods and individuals. The global economy is in a deeper recession than it witnessed during the global financial crisis in 2008 (WTO, 2020b). In the same context, the World Bank predicted that the global economy will grow by about 2.4 % in 2020, except for the indicated that the uncertainty surrounding the global economy still exists (IMF, 2020). The World Bank (2020a) indicates that these expectations can be modified in line with current conditions and potential threats it is caused by the outbreak of the epidemic, despite international efforts and stimulus packages launched by multinational companies, international organizations and governments and the global central banks. On the other hand, the United Nations (2020) indicated that the global economy in light of the Covid-19 outbreak, it is expected to grow by less than 2 % in 2020 compared to its expectations before the emergence.
The virus, which reached 2.5 % with the possibility that the organization will make further adjustments in light of current uncertainty. Note that companies pointed to some of the existing challenges that could be an obstacle to achieving rates the growth it referred to, including trade and geopolitical conflicts and financial turmoil (ICMA, 2020). In addition, the repercussions of the Covid-19 on the global economy is facing a state of uncertainty, and the lack of access until now to discover vaccines to treat it, so international and regional organizations have tended to review expectations economic growth for 2020, and recently adopting more realistic scenarios to assess the threat of the outbreak of the epidemic on the global economy Consequently, lowered its global growth forecast to 2.4 % (WTO, 2020a). Figure 1 illustrates coronavirus scenarios highlight the adverse impact on growth. The change in GDP growth in 2020 relative to baseline, percentage points
In the response, repair and recovery phases of this crisis, citizens and policymakers have reacted differently across regions. This time, we need to build back better. A key part of doing so will entail shoring up the role of public transport, the backbone of urban mobility, as an enabler to other economic, social and environmental city objectives.
The economic benefits of public transport are five times higher than the money invested in it1. Public transport unlocks positive effects in the wider economy by connecting people to their jobs, studies and leisure occupations, allowing for clustering of activities and business development, improving quality of life, supporting tourism, reducing traffic congestion, stabilising property values and helping to regenerate cities or deprived areas through transport connections. Studies report a significant increase in the value of property developments close to transport projects designed with a transit-oriented approach, reflected by nearby retail stores, quality pedestrian areas and open spaces.