Covid-19 | Economic stress | How sharply the pandemic will upend the world economy

The coronavirus outbreak is first and such a huge human tragedy, affecting billions of people around the world and having a growing impact on the global economy. 

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The world economy which was already lethargic before the outbreak of coronavirus spread is now constrained to undergo the worst fallout since the great depression of the 1930s with over 170 nations likely to suffer from negative per capita income growth in the year 2020. As per the estimations made by the major economist of the world the global economy could shrink by almost 1% in the year 2020 due to an outbreak of coronavirus pandemic.

The virus is causing a huge loss of life and the things that were normal just a few weeks ago - going to school, going to work, enjoying vacations, getting social is now a big danger! The world is going through a crisis like no other till date. It has rattled the social and economic order at an alarming rate.
The economic impact of the 2019–20 coronavirus pandemic can be hugely disruptive. IMF, World Bank and credit rating agencies have downgraded the world's growth for the fiscal year 2021 with the lowest figures which the world have seen since the worldwide economic downturn of  1929 that lasted for 10 years when the New York Stock Exchange on Wall Street crashed which uprooted billions of investors.

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The wide range of possibilities for the expected decline can be understood by the unparalleled nature of this pandemic and the estimations about the expected recovery in 2021 are equally ambiguous, as this totally depends on how long the outbreak lasts and afterward how effectively the policies are implemented.

The inescapable decline in the economies across the world will have painful outcomes for households, businesses, retail, hospitality, transport, and tourism.

IMF chief Kristalina Georgieva said that “The pandemic outbreak is a crisis is huge and poses daunting challenges for policymakers in many emerging markets and developing economies (EMDEs), especially where the pandemic encounters weak public health systems, capacity constraints, and limited policy space to mitigate the outbreak's repercussions," Further she added in most of the countries, the majority of workers are either self-employed or employed by small and medium-sized enterprises and this sector is especially exposed to this major threat!

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The circumstances have made everyone think that where the world is today and where it might be heading.

The burden of this outbreak is unevenly distributed in the world even when the cases are reported from everywhere. Some countries are at the initial stage of the containment while others are at the peak of harm caused by the pandemic. 

The health facilities and approaches to be utilized vary substantially taking the level of hazard into consideration. The preventive measures like physical distancing, lockdown, effective use of the available resources, and healthcare capacity must be paid absolute emphasis and must be used as per the local situation and progression of the disease.

But the foremost question that arises in the current scenario is how to resume the economies of all the nations in the time of coronavirus outbreak! 

The immediate goal is to bring the pandemic under control and lessen the economic damage it has caused while the places with high transmission must give a thought before restarting economic activities as this will only lead to more transmission and drastic situations. The readiness of the region to restart its economic activities depends on the strength of the systems it has for detecting, managing, and preventing new cases. 

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The economic downturn due to the COVID-19 pandemic is much more like the global financial crisis of 2008-09 when governments proceeded with monetary and fiscal policy to counter the economic shock and provided temporary income to support to businesses and others but the difference this time is restrictions on movement and maintaining social distancing to slow the spread of the disease which leads to further upending of the economy.

A sharp decline in consumer spending, tourism, commodity exports and imports, scarcity of the laborers (due to lockdown) in upcoming days will be the major hindrance in the way to restart the economies. 

The situation can become more tensed as we move through this containment phase but whatever comes ahead we must always be prepared for recovery in any case. The world needs to unite as one and fight against this global outbreak efficiently.

We need to save our economies, our people, and our nations and not to forget our mother EARTH.

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