It’s a period of recession with a predicted loss of global income in trillions of dollars
COVID-19 does not only affect the heath of people and lead them to death in most cases, but the disease is also adversely affecting the economy all over the world. An advisory has been issued to maintain a proper social gap to tackle with the situation which is good as a one side decision, but it has shut the movement of people to other countries for work or tourism in almost 100s of countries. Not only the intra-city but also the inter-city movement is being fully closed. This scenario has an adverse impact over the world output.
Industrial operations are closed, offices are moving towards work from home that too for few MNCs, factories are shut, businesses are almost facing crisis this is the scenario we can see all over the world and has an impact over revenue generation, earnings and economy all over the globe.
Thousands of workers all over the world are becoming unemployed. This situation is worst for the daily wagers, for whom the only source of income is the work they get every day helping them earn their bread and butter. Even though Governments are providing relieve packages to avert in the time of deep recession. It is believed that in the worst-case scenario, the world GDP could contract by 0.9 per cent in 2020, It also states that the contraction could be even higher if governments fail to provide income support.
These happenings have made Economic Experts to admit that – Yes, it’s a period of recession with a predicted loss of global income in trillions of dollars. This will even more troublesome for the developing countries.
In this tough time, Government support is the need of the hour, a well-designed package provided by the Government, prioritizing health spending and income support to poor households who are most affected by the pandemic would eventually help to minimize the likelihood of this economic recession.
According to the forecast, lockdowns in Europe and North America are shaking the service sector hard, especially the industries that require physical interactions such as retail trade, leisure and hospitality, recreation and transportation services and work from home has no options for them Collectively, such industries account for more than a quarter of all jobs in these economies. As businesses lose output, unemployment will increase leading to the backlog in the economy.
To deal with the situation, Government support and also rich protecting poor is the need of the hour to deal with the global crisis arising out due to the pandemic of COVID-19 .