# data[].attributes.body
- The virus reduces global economic growth to an annualized rate of −4.5 to −6.0% in 2020. (according to The COVID-19 Pandemic and Economic Growth: Theory and Simulation report)
- Create social distance  -> open the new chapter for work-from-home and virtual interaction

Infectious diseases can slow down economic growth in the long run:
- Infectious diseases will change the investment trend of economic agents.
- the epidemic will directly lead to a decrease in the labor supply, and the input factors of the economy will be significantly negatively affected.

# data[].attributes.body
During the pandemic:

- Nations that rely heavily on services, and tourism are particularly severely affected by travel restrictions (https://www.weforum.org/agenda/2022/01/global-travel-tourism-pandemic-covid-19/)

International arrivals have increased by just 4% in the second year of the pandemic; with 1 billion fewer arrivals when compared to pre-pandemic levels.

63% of experts from the World Tourism Organization (UNWTO) believe the sector won't fully recover until 2024.

Social distancing in many countries has caused a decline in the value of exports and imports of goods and services, accompanied by a decrease in income, a decrease in consumption, and a stagnation of import and export activities. As a result, the supply and demand of goods on a global scale also stagnated and the volume of world trade in goods decreased significantly.

# data[].attributes.attachment_link.readable_text
COVID-19

A full recovery of the global tourism sector isn't expected until 2024. Image: UNSPLASH/Eva Darron

Stay up to date:

COVID-19

Follow

International arrivals have only increased by 4% in the second year of the pandemic. Image: Statista

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

# data[].attributes.attachment_link.title
This is the impact of COVID-19 on the travel sector

# data[].attributes.attachment_link.description
COVID-19 A full recovery of the global tourism sector isn't expected until 2024. Image: UNSPLASH/Eva Darron Stay up to date: COVID-19 Follow International arrivals have only increased by 4% in the second year of the pandemic. Image: Statista Don't miss any update on this topic Create a free account and access your personalized content collection with our latest publications and analyses.

# data[].attributes.body
Worldwide:

Covid-19 continues to upset the global economy. Global supply chain turmoil, factories running short of raw materials and spare parts, late deliveries, cargo ships congested at ports,

Covid-19 broke out in Wuhan in the last months of 2019, Chinese factories stopped working for several weeks, causing many car manufacturers in Europe and America to temporarily lay off employees, due to lack of spare parts, lack of electronic components. This phenomenon will happen again in 2021

For example, from the lack of semiconductor components, the whole world's car manufacturing industry lacks electronic chips, and car manufacturers cannot deliver goods in time, affecting the entire car distribution system.... The problem is that the semiconductor manufacturing industry is concentrated in the hands of too few suppliers and these numbers are not enough to meet the needs of the market. The electronics industry is too concentrated in Taiwan

# data[].attributes.body
The COVID-19 pandemic took place in the Southeast provinces, the Mekong Delta, and Hanoi must implement social distancing according to Directive 16 for a long time, which has affected the economic growth results.
- The agriculture, forestry, and fishery sector have low growth in the third quarter of 2021 because of the prolonged social distancing, which has affected agricultural products' production, harvesting, and consumption.
- Agricultural, forestry, and fishery activities also face many difficulties because of the inability to circulate agricultural products.
- In addition, many food and food processing enterprises stop purchasing agricultural products, and export packing enterprises do not operate or operate in moderation, making many agricultural products (rice, fruits of all kinds) unable to be exported.
- Covid 19 pandemic made people's purchasing power significantly decrease because, during the lock-down time, they cannot go to the office to work on-site, so they have to stay at home work, but mostly when working from home, their salary will be declined remarkably, making their income much lower than in previous years. Therefore, Vietnam's economy is also affected.

# data[].attributes.body
Vietnam was considered as being at least developed around 2020, expanded by 2.9%. Against the problems of foreign countries are facing, Vietnamese people are really struggling without many difficulties. However, the Vietnamese economy heavily relies on China as China is currently the second-largest export market of this country and production in Vietnam always depends on imported raw materials, primarily from China.

It can be concerned that most sectors of the economy are decreasing. The agriculture, fishery and forestry has slow growth due to the third quarter of 2021.The service sector in the third quarter of 2021 saw a record decrease due to the prolonged social distancing period (down 9.28%). Industry and construction, and service sectors both decreased by 5.02% and 9.28%, respectively. Moreover, the economic impact is clearly seen, especially in the airline and tourism industries, which are among those most affected everywhere.

# data[].attributes.body
-The economic impact is clearly seen, especially in the airline and tourism industries, which are among those most affected everywhere. Vietnam Airlines — the only national airline — has reported that the damage from closing routes to be about US$1.3 billion. Vietnam’s tourism industry is facing an expected loss of between US$5.9 and US$7 billion.
-The education and training sector has been affected by nationwide school closures.

# data[].attributes.body
- In the airline and tourism industries:  Airlines — the only national airline — has reported that the damage from closing routes to be about US$1.3 billion. Vietnam’s tourism industry is facing an expected loss of between US$5.9 and US$7 billion.
- Job: It is estimated that up to 10.3 million workers could lose their jobs or have their incomes decreased. Vietnam’s GDP growth could fall from 7 per cent in 2019 to 4 per cent in 2020.
- The education and training sector has been affected by nationwide school closures. Schools will reopen in phases. Education is being delivered online despite teachers and students finding it difficult because of a lack of training and infrastructure.
- Healthcare: Bach Mai Hospital — one of the largest tertiary hospitals in Vietnam that provides medical services to more than 1.75 million patients annually — shut down for 14 days due to a COVID-19 outbreak.