It has become clear that most governments in the world underestimated the risks of rapid COVID-19 spread and were mostly reactive in their crisis response. As disease outbreaks are not likely to disappear in the near future, proactive international actions are required to not only save lives but also protect economic prosperity.
Dr Anton Pak, Dr Oyelola Adegboye, Dr Adeshina Adekunle, Dr kazi, Rahman, Professor Emma McBryde, Professor Damon Eisen


Global financial markets have been heavily impacted by the effects of COVID-19 spread. As the numbers of cases started to increase globally, mainly through the US, Italy, Spain, Germany, France, Iran, and South Korea, the world financial and oil markets significantly declined. Since the start of the year, leading U.S. and European stock market indices (the S&P 500, FTSE 100, CAC 40, and DAX) have lost a quarter of their value, with oil prices declining by more than 65% as of April 24, 2020. Daily data on stock market volatility and price movements are good indicators of consumer and business confidence in the economy. There were significant negative relationships between the daily number of COVID-19 cases and various stock indices. The correlation ranges from −0.34 to −0.80.


As the spread of the virus is likely to continue disrupting economic activity and negatively impact manufacturing and service industries, especially in developed countries, we expect that financial markets will continue to be volatile. There is still a question as to whether this unfolding crisis will have a lasting structural impact on the global economy or largely short-term financial and economic consequences. In either case, it is evident that communicable diseases such as COVID-19 have the potential to inflict severe economic and financial costs on regional and global economies.

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First published: May 27, 2021
The Australian Institute of Tropical Health and Medicine (AITHM)
The [Infectious Disease Modelling and Epidemiology Group](, at the [ Australian Institute of Tropical Health and Medicine (AITHM)](, is dedicated to examining and quantifying the dynamics of infectious diseases of interest to our community in Tropical Northern Australia, the Ind-Pacific Region, and the world. We build models aimed at improved understanding of disease processes and public health policy decision support.