It is undisputable that the COVID-19 pandemic has imposed a huge impact on the economic activities throughout the world. The impact is more palpable in the developing nations as the majority of the society should rely on a "hand-to-mouth" living style. This will make a "stay at home " and "social distancing" strategies of containing COVID-19 difficult and luxurious in these nations. I want to hear what you have to say on this situation. Thank you!
You can get a dead economy revived but can not revive a dead person affected by COVID-19 pandemic.
Most of the countries are doing a balancing act to weigh the risks and benefits of the above 2 actions.
Where I live, in a UK coastal town (not a resort at the moment), the streets are very quiet and shoppers generally abide by all the safety measures put in place. The numbers of COVID-19 infection are low in our county at 300 - (total population was 339,614 in 2018) although the number of cases is still rising:
https://www.msn.com/en-gb/news/coronavirus
But I was looking at this link written on 14 April about London:
https://www.telegraph.co.uk/news/2020/03/25/london-lockdown-coronavirus-tube-bus-leave/
The London statistics are much higher; even within one small country (the UK) there are great differences and the ease that people can keep themselves safe varies enormously.
@vishnu, I feel the pain that the migrant laborer of Indian society are in.
Good question but also lead to another question, what is most important when we have 1000 person died caused by Covid-19 or may be a million person die by economic crisis (hungry)..
@Hasan; hunger is equally important if not more as that of COVID 19.
Due to Coronavirus (COVID-19) epidemic, lock down is imposed by Government and therefore, one is compelled to stay in home. It is, indeed, very difficult for the poor persons living in many developing nations. However, in several countries, Government and NGOs are helping the poor people during the Coronavirus (COVID-19) epidemic.
Most of the labour are taken care by local authorities and also protecting them from deadly corona virus. Once situation is good, economic growth also raises.
… Essential services should remain operational and governments should put in place social and economic policies ...
World Health Organization. (2020). Coronavirus disease 2019 (COVID-19): situation report, 72.
... The coronavirus pandemic is likely to lead to a steep, and potentially protracted, economic downturn. In response, many countries have implemented ambitious packages to support households and businesses ...
Bénassy-Quéré, A., Boot, A., Fatás, A., Fratzscher, M., Fuest, C., Giavazzi, F., & SCHOENMAKER, D. (2020). Corporate debt burdens threaten economic recovery after COVID-19: Planning for debt restructuring should start now. VOX CEPR Policy Portal [21/03/2020]. Disponível em:. Acesso em, 2(04).
...Policy responses by central banks and treasuries ...
McKibbin, W., & Fernando, R. (2020). 3 The economic impact of COVID-19. Economics in the Time of COVID-19, 45.
… an expansion of the existing employment support package for young adults ...
Loayza, N. V., & Pennings, S. (2020). Macroeconomic Policy in the Time of COVID-19: A Primer for Developing Countries.
... promote independent analysis and public discussion of open economies ...
Fornaro, L., & Wolf, M. (2020). Covid-19 coronavirus and macroeconomic policy.
...Policy responses by central banks and treasuries ...
McKibbin, W., & Fernando, R. (2020). 3 The economic impact of COVID-19. Economics in the Time of COVID-19, 45.
… an expansion of the existing employment support package for young adults ...
Loayza, N. V., & Pennings, S. (2020). Macroeconomic Policy in the Time of COVID-19: A Primer for Developing Countries.
Many economic data show that due to the development of the Coronavirus pandemic in 2020, the global economy will slow down its growth by several percent. compared to the previous year. Perhaps there will be a short-term recession in the economy in some countries. The current period of the SARS-CoV-2 Koronavirus pandemic is a very difficult period for many enterprises. The forecasts of many research centers show that in the coming months economic growth will drop in many countries by several or even a dozen or so percent. In the media dealing with economic issues, one of the main topics is the issue of potential economic crisis, which now (end of April 2020) begins in many countries. Many tourism, hotel, catering, cosmetics, etc. businesses are currently losing most, almost all, or all customers because people are worried about SARS-CoV-2 coronavirus infection causing Covid-19, and this is also associated with various mobility restrictions away from home and with a warrant or recommendation to stay at home as part of preventive quarantine in many countries. As a result, many companies are already recording large declines in sales and profits, limiting employment and / or stopping their business. Therefore, it is necessary to permanently improve and increase the scale of anti-crisis socio-economic policy planned, developed and implemented both at the level of individual countries as well as within coordinated international activities. In some countries, pro-development, interventionist, anti-crisis programs have already been launched to save business entities from mass bankruptcy by introducing additional temporary tax breaks or exemptions, subsidies to employees' remuneration under fiscal policy. On the other hand, as part of monetary policy, central banks reduce interest rates, launch loans for commercial banks on preferential terms, buy lost loans from commercial banks and / or implement sovereign bond buy-back programs to maintain liquidity in the commercial and public financial system of the state. However, the question arises how many months of this type of high budget aid programs can be implemented? To what level can the budget deficit and public debt be increased as part of the implementation of this type of anti-crisis programs helping the economy, enterprises and citizens? To what level can the government allow inflation to rise as a result of this type of economic assistance programs? Can the current economic crisis in many countries turn into a crisis of public finances? So there are many interesting issues in which you can undertake scientific research. There are many questions that we will know the answers in a few months. On the other hand, the decline in sales revenues and profits, recession etc. does not apply to all enterprises and branches of the economy. It can already be seen that there are sectors in which enterprises are recording sales increases. For example, companies developing sales via the Internet, developing e-commerce, retail chains that offer sales via the Internet, etc. Therefore, the current Koronavirus pandemic in 2020 indirectly accelerated the digitization of business processes.
Regards,
Dariusz Prokopowicz
@Dariusz thank you for the in depth analysis of the economic impact of COVID19