Covid-19's Attack On The Economy
BY: Telha Chohan & Ishrak Ahsan
With people being advised to stay home and businesses forced to close, COVID-19 has disrupted the world’s economy. Millions of people across the globe have lost their jobs because of the pandemic and businesses are encountering substantial losses as the world economy is in decline. Even though it may seem that the world has already entered a recession, many financial analysts and economists are debating whether the economy is entering or already in a recession. Regardless of what stage the economy is in, one thing is for certain, it has already had an adverse effect on the livelihood of people.
According to the UN Labour Agency, the economic impact of COVID-19 is proving to be far worse than the 2008-9 financial crisis with global unemployment already over 195 million. The four sectors most impacted by the crisis so far are food and accommodation, retail and wholesale, business services, and manufacturing. Together these sectors make up 37.5% of global unemployment and are the most affected sectors. All other sectors of the economy have been impacted by the virus to different extents, agriculture, for instance, has been one of the most vulnerable sectors especially for developing countries where more infrastructure is now needed to keep up with demand and in other cases, items are just not selling like they were projected to. An example of this in a developed country is how in Idaho, millions of potatoes are being dumped due to lack of demand, however, due to social media, they are now being taken to those in need. Fiscal stimulus measures have been implemented in various countries to intervene and try to yield the best possible outcome for families and businesses under the circumstances.