A mechanism to eliminate the negative effect of the pandemic on the economy through bank credits

Abstract

People have been affected by the COVID-19 virus pandemic, but it is a global problem. It negatively impacted people's lives in all countries and communities and negatively impacted global economic development in 2020, unlike anything seen in over a century. According to current estimates, the virus slowed global economic growth to a -4.5 percent to -6.0 percent annualized rate in 2020, with a partial recovery of 2.5 percent to 5.2 percent expected in 2021. In addition, in 2020, global commerce was expected to decline by 5.3 percent, but it is expected to rise by 8.0 percent in 2021. The article analyzes the economic crisis caused by the coronavirus pandemic and its negative impact on all sectors of the country. It is proposed to overcome the economic crisis through the development of business entities. Based on the correlation and regression analysis, several positive aspects of business financing through bank loans were studied, including the positive impact on the country's GDP and employment growth.