The outbreak of the coronavirus has caused damage to people's lives all around the world, both physically as well as mentally.
The pandemic, declared by WHO, is originated from Wuhan, China. The virus has infected over 124,000 people in at least 114 countries and has taken the lives of nearly 4600.
Globally, every government is undergoing a huge economic loss. Due to a worldwide lockdown, all the imports and exports have been stopped which has impacted their precious revenue. Nations such as Japan are under sizable public debt, which stands at 235% of GDP, according to Forbes Japan, will face worse conditions due to the pandemic.
The currently rampant virus may put some of the largest economies, so deep in debt that they might end up using their foreign resources. Most businesses have taken a hard hit and are undergoing huge economic losses with the exception of the industries that deal with essentials and medical supplies. The demand for hand sanitizers, masks (especially n95), gloves and other sanitary items have increased the production rate of the medical industries. The rise in demand for groceries has had a similar effect on the essentials industry. This has lead to a hike in the prices. In the short term, this may seem like an ideal situation for the businesses but soon, they will have to make the cuts in their profits.
The pandemic has marked its effect on the stock market as well. Since this has caused stress in the economy, the investors are pulling out their investments. Hence the stock market is crashing. Due to inadequate funds in the Research and Development department, there's a delay in the manufacturing of the vaccine: the cure for the virus.
The exchange rates have also been hit and we can anticipate a depreciation in the value of some currencies given the current circumstances.
Interest rates in investments have also been reduced in order to stimulate consumption and investments.
The hit on the economies around the globe is severe and recovery may be delayed. But it isn't impossible.
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