Current Event Update: Thursday, may 14th

By Andrew Shi

Sweeping across much of the world, Covid-19 has decimated many of the strongest economies of the world, halting trade and commerce in many of the hubs of trade around the world. For states with both less developed healthcare systems, as well as a developing economy, they find themselves particularly vulnerable to shocks within global markets. 

As economies depend on both foreign investments and exports of raw materials, this makes them specifically vulnerable to shifts within foreign economies. Crashes in the price of oil and dips in consumer good purchases have resulted in manufacturers importing less of minerals for production, hampering extraction, and instituting a spike in layoffs. IMF predicted 1.6 percent GDP growth for the region for 2020. 

Moreover, the undersupplied hospitals and underfunded medical services have resulted in a spike in cases especially within already impoverished communities and underserved communities. The extent of the damage will be determined by the measures taken by states in the following weeks.
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Source: PBS, Foreign Policy