The raves of the pandemic COVID-19 disease is more becoming a case of global emergency as it had rapidly spread to many other parts of the world. The disease which started in the Wuhan province of China in December, 2019 had affected the economy and social life of Wuhan and various Chinese areas. However, the economic effects of the COVID-19 is no longer an issue China has to deal with alone, many countries of the world have been reporting and are continuing to report increasing confirmed cases of the Corona Virus.
Now that the COVID-19 has affected major countries of the world like the United States, Germany, Iran, Italy, Japan and parts of Africa etc., many small businesses are suffering the consequences of economic shutdown, social distancing, self isolation and containment policies. With anxiety all over the world, a number of small business owners are wondering: how can my business cope with the COVID-19? As you continue to read this article, we will be sharing with you how the COVID-19 pandemic is affecting various sectors of the economy, as well as how businesses are coping with the COVID-19.
How COVID-19 Is Affecting the Economy
Do you know that the COVID-19 is not just a threat to human lives (health), but it is an attack on the very basis of human livelihood (economy) all over the world. The COVID-19 pandemic has destabilized global healthcare institutions. As a matter of fact, retailers have been reporting a drop in sales and the stock market is not spared from the effects of the COVID-19 pandemic.
A major way COVID-19 is affecting the economy is through the skyrocketing rate of unemployment. COVID-19 is really affecting the world’s economy as a lot of people who are very active in the world labour force have to sit at home in a bid to observe social distancing and self isolation. To buttress this, do you know that it has been reported that over 3 million individuals in the United States have filed claims of unemployment in the past one month? A lot of hands have become idle and this, every economist, would agree is bad for the economy of a nation.
Furthermore, the pandemic COVID-19 is seriously causing a change in the way financial institutions used to utilize economic resources. Many world organizations, governments, and global philanthropic businessmen have diverted the pump of economic resources. Prior to the spread of the pandemic COVID-19, various economic institutions were concerned with building the economy via investments, creating more jobs, provision of basic amenities and infrastructures, development of technology etc.
However, there has been a diversion in the way these economic resources are being utilized. Now, businessmen philanthropists such as Jack Ma and others are beginning to spend huge amounts of money on reliefs for COVID-19 affected areas, health campaigns about the COVID-19, and making sure the unemployed masses do not starve or lose their minds at home. To buttress this, do you know that the United Kingdom has had to pay about 80% of employee wages for individuals who can not go to work because of the COVID-19? In addition, the European Central Bank has resolved to launch €750 billion stimulus program after the US Federal Reserve move to cut interest rates to almost zero.