There could be a loss of $5.5tn in global production because of the novel coronavirus (Covid-19) crisis, a Qatar University (QU) online seminar was told.
QU College of Business and Economics, in co-operation with the Faculty of Law at QU, organised a tele-discussion seminar entitled: “The economic, financial and legal implications of the corona pandemic: short and long-term perspectives.”
Dr Ibrahim al-Ibrahim, economic adviser at the Amiri Diwan, Dr Belkassem al-Abbas, senior expert at the Arab Planning Institute in Kuwait and Dr Mona al-Marzouqi, assistant dean for Research and Graduate Studies at the Faculty of Law, QU, participated in the discussion and the session was moderated by professor Dr Saif al-Suwaidi, professor of economics at QU.
Dr al-Ibrahim said: “The repercussions of this pandemic on the global economy will be very harsh — although this picture is not complete yet — but we can say that these effects are distinguished by their severity and comprehensiveness, we are talking about a loss of $5.5tn in global production, as the pandemic included most of the world’s countries. Other than their economic progress and economic systems, the impact will be greater on countries that depend on one economic activity, countries that depend on the flow of capital and developing countries that depend on foreign direct investment, for the least developed aid dependent, in addition to oil-exporting countries such as the Gulf Co-operation Council countries due to the collapse in oil prices and thus a significant drop in their oil revenues.”
The session focused on the repercussions of the global health crisis made by the spread of the corona pandemic in addition to its economic and legal repercussions at the local and global levels. Professor al-Suwaidi said: “This pandemic affected people, production, consumption, investment and government decisions, as governments have become confused. Do you provide assistance to consumers and individuals? Families, or to investors, producers, and health institutions, so where do the priorities lie?”
“As for the Arab countries, the first and largest of these repercussions is the collapse of revenues in the oil countries, where they will find themselves obliged to withdraw their financial reserves in order to face this crisis until the end of this year. As for the non-oil countries, their fragile situation is due to the high budget and debt crisis. Secondly, with the collapse of growth, unemployment rates in Arab countries in general will rise by a total of approximately 4%. The third consequence is linked to supply chains, import of necessary goods and stock depletion,” Dr al-Abbas noted.
“The rapid spread of the coronavirus has produced many legal effects on contractual obligations and caused a disturbance in the contractual balance between the parties to the contractual relationship,” Dr al-Marzouqi added.