impact of corona on world economy

Coronavirus (COVID-19) a pandemic disease that has affected many people around the world, in a short duration of time.

This seems like a war in many world countries against an enemy that is invisible but is such a level stronger that it could spread in seconds from one individual to the other. Therefore to protect oneself from this disease self-protection is the most important phenomenon.

For this purpose, the government starts lockdown in many countries. The main reason behind was to prioritize the isolation between the individuals. At the initial stages government started the quarantine places for people with minute symptoms of the disease but later on the home quarantine was recommended as the cases exceed.

 

With the other affects the coronavirus is making on human life one of the largest is

  • the poverty level increasing in many countries. Mostly in the developing worlds,
  • the outbreak of COVID-19 leads to a decrease in the economic conditions of many countries.
  • Due to the pandemic situations, the agricultural sector was poorly neglected as the result of which the crops which are to be harvested at the time of lockdown situations damaged poorly.
  • Many people as the result of the strict rules applied by the government cannot visit their fields on time at will face the yield by loss for it.
  • Due to the poor production of many crops during this time period, the import of crops will reduce and all impact will be on the economy.
  • Due to lockdown and various other effects the vulnerability of employment decrease and it will result in the increase of poverty and unemployment rate in the country.
  • As a result of unemployment, many people will meet the poverty line and in this situation, the economy will badly be affected.

In order to rise up the economic level, many countries decided to open the lockdown.

The condition of lockdown has closed all the inputs of income like

  • the manufacturing sector,
  • aviation,
  • international transports,
  • tourism,
  • trades,
  • agricultural stock markets,
  • domestic’s investments,
  • hospitality and entertainment,
  • education and
  • other related institutes.

The developing world with all these activities in reduction, the remittances of oil trades also takes place as with the reduction in transportation the usage of oil decreases in all nation of the world.

Due to this remittances, many workers abroad become jobless. Hence many countries around the world start to experience the economic impacts of COVID-19. On the front level, the social distancing and isolations result in the restriction of the people gatherings lead to a shortage of supplies.

This result in the fall of trades and restricts the import sector of the economy.

These lockdown situations impacts will last longer even after the lockdown will be over because of the people’s beliefs.

  • Social distancing results in the economy to run at a very slow pace.
  • The exports of many countries are postponed or cancelled out due to pandemic arise.
  • The decrease in import exports of a country will lead to a decrease in GDP.
  • The trade disruption among the nation is the main reason for GDP losses. In the coming times, the poverty level will arise in many areas of the worlds and the unemployment’s rate increases.

 

In order to overcome both the situations, we must have to play over the role in rising our economy. The efforts of many people in collaboration with each other can help to recover from this alarming situations and making the world a better place.

 

feature image: Photo by Nick Fewings on Unsplash

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By Admin