Corona Virus, or as it is known as COVID-19, has already pushed the world into chaos. As the countries across the map of the world announced lockdown, it remains a common concern among the masses that how long will this lockdown reside and how far this lockdown will affect the economy of the global village. Let’s analyze some of the facts and figures that are helpful in analyzing the prevailing economic crisis of the world.
The International Monetary Fund (IMF) suggested that this economic recession will be worst than the Great Depression of the 1930s. No one thought in 1929 that a stock market collapse in the USA would lead to one of the greatest crises of history. Similarly, nobody predicted this time that a virus, which originated from the vet market in Wuhan will force the countries to lockdown almost everything.
The IMF added that the continent of Asia would yield zero growth this year. The monetary institute further emphasized that the continent can grow its GDP by 7.6 % next year if the containment policies for the virus succeed. It is apparent to mention here that Asia is the world’s most populated continent, which contains more than 60% of the global population. Not to mention the fact that two of the world greatest markets China and India are present in the same region.
Global GDP downfall amid COVID-19:
According to local Chinese reports, the country’s expected growth in this year will be 1.2% as compared to the initial stats by the IMF in January, which suggested that China can enjoy 6% growth this year. Remember that this is China’s worst figures since 1976.
Meanwhile, if we move a little bit down the road, we will come to know that Australia is also about to face the worst crisis since 1991.
The economies of the USA, Italy, France, the UK are also facing a crisis as all of the mentioned countries are under severe crisis right now. The economic centre of the world, the USA has been to its knees first time in recent times. The IMF predicted that the USA’s economy would face 5.9% downfall this year, and the unemployment will rise to 10.4%. It will not be strange if president Donald Trump announces a policy for the companies to fire foreign employees as compared to local US residents to give Americans a bit of relief under his America’s first policy.
The global recession and the deprived ones:
What does this nosedive of the global economies entail for the common man? Well, at the end of the day it is the most miserable person of the world which is going to pay the price, for the landlords will survive through their bank balance, and the great businessmen will also withstand the crisis.
” As the lockdown has been enacted for quite a long time now, it is impossible for them to survive”
The governments around the world are sponsoring trillions of dollars for the deprived faction of the society. Hundreds of thousands of people work on daily wages throughout the globe. As the lockdown has been enacted for quite a long time now, it is impossible for them to survive. So here the new crises emerge, the plight of hunger which is going to push the poor into chaos. But what about the countries where almost all of the population live below the poverty line? What about the war-torn countries of the middle east or Africa? What about those countries where starvation was at its peak even before the crisis of COVID-19?
There is a straightforward answer to all of these questions; they are going to face more difficulties in the upcoming days. Coming days can further deteriorate the situation in these countries, not to mention that the USA has already cut the funds for the World Health Organization (WHO).
By date, more than 2.2 million people have been infected due to the virus, and more than 150,000 have died, and the numbers are increasing exponentially.
The IMF has recently announced to give debt relief to 25 underdeveloped countries which will undoubtedly help them to have a little bit better time in the wake of global crisis.
What lies ahead for economy under COVID-19
It will be nothing but to live in a fool’s paradise if we believe that this crisis is going to end soon. Trump has already said that he is going to re-open the economy phase by phase. Similarly, many countries are also planning to call-off the lockdown in a premature fashion. However, it can have its severe consequences for it can take the crisis to an unprecedented level.
It is never easy to predict what will the economic situation of the world after the Pandemic as no one knows how much time this virus will take to die its natural death or to get controlled.
As we all know that today the world is having such an interlocked global economy that recession in one country fosters the crisis across the globe. The global supply chain is much bigger today as compared to any other time in the known history. So, we are all in this together.
The only possible solution which one may think is the prevention and to act upon the guidelines given by the governments. Only then we will be able to see the world again as it was before COVID-19.