- On 12 Feb 2020
Economic Impact of SARS-COVID-19 on Global GDP
The world is coming closer to withdrawing from a month long lock down which is partially effective and finally the reopening is imposed on various governments as the saving of the governments and the institutions almost dried up. Now, none can afford to continue with the lockdown as the economy is in the ICU already and the poor and deprived the labor class, all are getting to defy the law to get into a job and earn a living. Most of the migrant workers are getting deported to their home state at the coast of the government fund. Now the reopening of the economic activity will find severe shortage of labor force again will invite another economic slowdown.
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The World is just coming out of the great depression of 2009 and its impact. Now the pandemic will cause the real estate and service sector except as in these sectors the jobs cannot be done from home.
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People will not spend money even if they get a job and reopen the offices. It will cause luxury and high end product sales and in many malls sales will slow down so does the demand. And another recession may follow with job loss. A second economic crisis may be the end result.
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The entertainment industry like cinema theaters and food outlets, restaurants, Clubs and Airways which are under pressure of debt have already been at the edge for a month losing their capital so much. The EMI of the loan and the Banking sector will again suffer a lot.
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In America, the retail sales dropped around 7.6% and the 22 Million Americans filed for the state benefits.
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The GDP growth in the world economy is worst affected and China and Europe reeling under a semi recession due to this pandemic lock down and boycott of the products from China.
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Global rating agencies have assessed that the global economy is going to lose its value of 2.5 % percent of Global GDP. That means the total GDP of the world in 2019 was 86.6 Trillion will lose around 3.4 Trillion in 2020.
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Many nations are getting ready with stimulus to invigorate the economy. It is going to show some results in a year. Because people are still suspicious about their surroundings and the walls of their own homes, high end activities and outdoor activities like cinemas, sport complexes will take time to get a crowd. This will force them to confine to home and workplaces, the entertainment and shopping are going to affect.The markets and malls will remain clueless about how to handle the situation.
The pandemic has affected almost 160 countries.The situation is forced to be revised as the people are unable to sit at home any more without having any economic activities thinning their savings and forced to defy the clampdown. Finally many governments decided to lift the clap down systematically. Any extension of the lock down will crash the national economies of each nation unless the lockdown is lifted systematically and the economic activities started instantly.
Kiribati, Lesotho, Marshall Islands, Micronesia, Nauru, North Korea, Palau, Samoa, Solomon Islands, Tonga, Turkmenistan, Tuvalu, Vanuatu. are some lucky few countries where no Corona cases were reported.
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The world is coming closer to withdrawing from a month long lock down which is partially effective and finally the reopening is imposed on various governments as the saving of the governments and the institutions almost dried up. Now, none can afford
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