Pandemics are large-scale outbreaks of infectious disease causing significant economic, social, and political disruption. Most of us are aware of the deadly virus COVID-19 or spreading all around the world and affected more them 153 countries. The virus pandemic has pushed the into a recession. The complete shutdown of many countries has resulted in global financial crisis. This economic damage is mounting across all countries.
China was the first country, where the virus was experienced first and continued to spread with its full force. European countries such as Italy, Spain, and France have experienced the apex of this virus and the number of cases is growing rapidly.
Most of the countries has announced complete shutdown to avoid the spread resulting in large swaths of the economy grinding to a halt. And because this is a pandemic, the same thing is happening virtually all over the world.
There are million people who have lost their job with losses in labour income. Such a sharp and staggering increase of unemployment has never been seen before, not even during the peak of the global financial crisis in year 2009.
This disease has engulfed almost all industries. Big shifts in stock markets can be seen, affecting the value of pensions or individual savings accounts. Restaurant & shop start to empty out, if not close then empty. Non-essential travel has slowed down, creating a big breakdown to travel industry and also to the smaller businesses that rely on tourism revenue.
The crisis is expected to hit workers with low and middle wages countries, where the share of those working in informal sectors, who have limited access to adequate health and social protection. The COVID-19 crisis will also lead to a reverse of decades of progress in the fight against poverty resulting in the high levels of inequality within and between countries. The COVID-19 pandemic is expected to negatively influence prospects for industrialization in developing countries.
The deadly virus is severely impacting manufacturing and production industries in developing countries because demand from high-income countries for manufacturing goods and raw materials is decreasing rapidly and value chains are being disturbed due to late delivery of necessary components and supplies from more technologically advanced countries.
Some counties have imposed restriction of movement of goods and people, resulting inability of employees to reach the workplace, which affect the normal production process.
The current crisis is likely to accelerate more in the coming months and years ahead making the global economic going down ever before.