COVID-19 is the disease caused by a deadly virus, named corona virus. It was first reported in Wuhan, China on 31 December, 2019. Now, this virus is creating chaos in the whole world by destroying the human life as well as the economy.
As per the latest updates, around 25 lakhs people are affected and 1.7 lakh people lost their lives during this crisis. Although not only 25 lakhs people, the whole world has been affected by this virus. The daily life of people changed suddenly and they all went into self-quarantine just to fight against this virus.
In the initial phase, all the countries took the conditions lightly which results in the major destruction. One can imagine the situation by the statement of US president, Donald trump:Initially, he said,
“America is not for being locked down”
Now, he said,
“If we managed to keep the death tolls to 2 lakhs, then it will be our achievement.”
As far as the economic condition is concerned, one can imagine the impact by the fall in price of crude oil. This pandemic is disrupting global supply chains and international trade. Global economy is being affected so much that one of the report of economic times predicted that global economy could shrink by almost 1%.
As in the past few months, around 100 countries closed their borders to avoid the spread of corona. This also affects the trading, import and export business. In the developed countries, like America, China, Russia, etc. the lockdown is hitting hard on both the private and public sector.
As many countries are dependent on each other for many goods. But as all the national borders are being sealed, it will be impossible to trade for such goods, which will automatically affect the economic condition of every country. For example, India is dependent on china for electronic imports, organic chemicals, pharmaceutical, mobile phones, etc…
Everyone is working from home now, to maintain the social distancing. But there are some industries or some manufacturing factories, where you can’t do the job from your home. So, to maintain the social distancing, the industries which need the physical interactions are forced to shut down. This affects the market in very bad ways.
Government is providing funds and facilities at the doorstep to restrict the movement of people on the roads. They are providing compensations to the BPL workers who are not able to earn in this condition and are forced to move out in search of food and money. This also provide a scenario that if government fails to provide such facilities, before this crisis ends, then the world will never be able to recover this conditions.
The condition of share market is also very pathetic. As due to this lock down, many new start-ups, companies are on the verge of shutting the business forever due to the heavy losses. E-commerce market totally dependent on the daily moving world. But now as the whole world has been shut down, this affects the E-commerce sites the most. Some are able to run by delivering the essential products to the people, but still they are not able to make the profit mark.
There are two factors on which the impact is dependent on:
- The duration of the lockdown: This provide the period up to which the restrictions will be held on the movement of people and economic activities.
- The money lost during the whole pandemic crisis: This includes the investment on the medical kits, compensation given to the BPL workers, investment on the creation of the vaccine.
As per the report of economic times, the best-case scenario depends on the moderate declines in consumption and investment in the developed countries. Then, the growth rate would fall from 2.5 to 1.2% in 2020.
But in the worst case scenario, the global economy could shrink by almost 1%.
This virus is deadly, stay at home and be safe. May be after some time, we can bring the economy back on track, but we cannot bring the people, we lost. This time is hard, but it shall too pass. Stay strong and maintain social distancing.