International Financial Market Connectedness and Spillover during the COVID-19 Outbreak

Abstract

The pandemic of COVID-19 has disrupted every aspect of life. From groceries to medicines, travel to events, sports to funerals, economics to politics and religion to social rights all domains of life have been shaken up by this infectious virus. The impact is deep and will have a lasting effect. The situation is severe in some countries, and it is too soon to estimate the exact impact of COVID-19 on the global economy. This is a review article examining different facets of the pandemic to understand the impact on the economy. This article examines the effect of this crisis on the financial markets, banking, hospitality, and health care sectors. The data comes from various reports published by the various organizations and institutions worldwide and the recent limited research literature available on this topic. The bitter truth is that the pandemic will have a substantial and extended negative impact on the global economy, especially on the financial and hospitality industry.