Friday, March 31, 2023

World economy and Covid-19

The covid-19 pandemic has left this world in a state of shock, as millions or billions of businesses have been close down and almost all of the people from around the globe lost their job. It has been a crisis like I haven’t seen of with all the lockdown, school, restaurants, and theaters shutting down, borders are being shut down, and the tourist businesses are in jeopardy. It is getting worse with millions of infectious cases have been piling up as the death toll rises and approached to million.

Let’s take this as in the business perspective it has effected the supply and demand of the job market as it saturated most of them, on supply side the productivity of the labor and workforce, the social distancing, lockdowns and business closure and on the demand side the massive layoffs, loss of incomes and the extreme uncertainty of the situation. It has certainly plunged the world into turmoil although there are some reduction in the cases for last 5 months but the damage has been done, the cases are going up on the countries like USA, Russia, UK and India their economy has suffered the most because of the negligence of the SOPS and protests of BLM it spread like wildfire. It had been disastrous on job side because of lack of demand on workforce with new graduated student tried to apply for Jobs the organization are doing budget cuts to sustain their economic needs.

World economy and Covid-19
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As corona virus run rampant across the world there are few countries that combat the pandemic very well, China and Japan really handled the situation well as Korea and Taiwan let’s look at the GDP of respected countries like China, India, Russia and Brazil.

The economy is at an all-time low and unstable, the GDP of the USA is down at 2.5 %, the economy of India has been highly unstable because of the pandemic with only 3.1 % down according to their ministry and considered it as the worst recession in the history of their country. Pakistan did have taken the devastating blow to their economy but with the negotiation and willingness to follow sops, they slightly recovered and fewer infection cases but the death rates are increasing but the economy has the alarming result, according to the ministry of finance monthly updates the current accounts remained in surplus at the budget of 382 million dollars, no growth occurred because of lockdown in their GDP in their fourth-quarter year. Unemployment has reached its absolute peak with a 10% decline in its revenue and budget and economy, with the fiscal year policy by the 2021 year compared with 5.80 million $ in the outgoing year. 30% layoffs in the private sector are also projected due to an extensive lockdown resulting in a 190 billion dollar impact on their respective sectors.

Covid-19 damaged Europe the most with their lockdown and unemployment also massive layoffs, the autumn forecast reports that the rate in the Europe rises from 7.5% in 2019 to 8.3%, in 2020 and 9.4% before declining in 2021 at the rate 8.3%, the unemployment rate of EU is forecast to rise from 6.4 percent to 7.7 % and 8.6 before declining on 8 at 2021. As the Europe take precautions against novel virus the FEAD provides food, shelter and other essential items to those who are deprived of it. This will help to lower the risk of virus infection and support people out of poverty. The June 2020 Global economic prospect described this pandemic as the damaging and bane of their economy, where the global recession has been down for 5.2% the deep recession which have been triggered by the pandemic will leave the everlasting scar on the economy of the world.

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