Benazir Marjan is intended to express her research findings in this article with all readers, going through this content.
Negative Effects of Covid-19 on Economy
Covid-19 is not only a global pandemic regarding health issue, but also a severe crisis in whole financial system. On 3rd January, 2020 the Director General of WHO (World Health Organization) declared the outbreak of Covid-19 to be a public health emergency of international concern. Covid-19 affected both the public and private sector of economy. The world is suffering for more than last one year. If the economy goes down for one year, the total effect is just beyond imagination. So many things are associated with this appearance. As the disease outbreaks are not likely to disappear in near future,therefore, our economy is under threat! Particular explications are given bellow:
1. Private sectors of a country have been endured extensively Due to Covid-19. It has fallen a drastic consequence over the countries for last one year. Specially, the developing countries are suffering more. Private sectors fire employees. People lost jobs as well as their earning source. Due to lock down, stuffs can’t attend to their work place. Clothing industries agonized a lot due to this issue. They have to stop their export to other countries for a certain time, which brought about huge loss for the industry. They became unable to pay workers fees as it was shut down due to Covid issue. Export plays a vital role in raising GPD (gross domestic profit) of a country. Therefore, it reflects a clear view of how GDP has been fallen due this pandemic. As we know, the private sectors are engaged in a great extent in country’s growth, specially for developing countries. Thus, the economic situation was in a big threat for almost all countries of the world due to this pervasive case.
2. In case of import it was exactly the same situation that had been arisen. As import stopped for different countries. The people who were dependent on their business based on import, just have been got lost due to this unpredictable circumstances. Import is also overly important for a county’s economy as well.
3. Businesses affected in immense way. Both long term and short term businesses hampered due to Covid-19 issue. Due to lock down and fear of virus shopping malls, shops were just run shortly. In the consequence of panic, people didn’t go out much. They only went for emergency purchase. Who lost their jobs, bought things in a very limited way only to survive. There were no buy and sale for luxury items. This is how businessmen went through severe crisis of this situation. The people who started any new small business, their investment went to almost in trash due to the pandemic. Business is a key factor for a country’s economic growth and stability. Hence, the sufferings started for the countries regarding the particular concern.
4. COVID issue also affected to the banking system. People started withdrawing their savings from the banks as many of them lost their jobs. Public became unable to repay the instalment of their loans due the arbitrary situation arisen by the pandemic. Therefore, banks started facing the lack of enough cash which lead them in the risk of liquidity.
5. Restaurants got close for long time. Owners went under huge loss. They could not able to pay the salaries of stuffs. Stuffs got jobless.
6. People had to sacrifice their life style those whose salaries got cut down due to COVID issue. It affected the total economic market in a whole.
7. Stock market uncertainty started due to the extended suspension of economic activities in almost every country. Index had fallen down. Share price of some companies went down. Mass people faced loss due to the fall in index. Stock market also plays a vital role in country’s GDP before the whole world.
8. As labor got jobless, slowly they started loosing their related work skills and competence which is a big menace for any economy.
Finally, jobless people started doing unethical activities to run their life which would hamper peace in a society. A discord society will never able to be economically productive. This is how Covid effects are directly and indirectly related to financial system and economic growth of every country. These fatalistic upshots will take time to recover for an economy to get back to its previous locus indeed.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2021 Benazir Marjan