hi There,

this is one of those questions that you know you have the answer/opinion, but is difficult to quantify it in writing due to the fact that there is so much one can say from different angles.

in summary, basically, i feel a health crisis affects 'people', and in the current world, people still largely drive the economy in any context/country. Hence the link. Adverse health effect on people will have an adverse effect on Economy. I always believe that healthy people = healthy economy= healthy country. In terms of the Coronavirus, I also feel the world was not ready for something of this magnitude, hence the countless implications it has had on the economy. Even measures such as lockdowns 'to curb the virus spread and save people' counted against the economy. However, i still support saving people lives first. Economy can always be saved/re-engineered/rebuilt or even replaced.

stay safe

Hello

There are so many explanations for it that we could be here all day and not even mention half of them. I'll try to tackle the broad aspects, but do keep in mind that there are countless details:

Today's economy is heavily dependant on flows of people and goods. When many of the world's top economies began to close their boarders, that by itself had a profound impact on several sectors. Tourism, for examples, has been nearly ceased to be in such countries, especially in Europe.

When the pandemic got worse, many countries declared state of emergency and/or enacted lockdowns, closing several non-essential services. Restaurants, grocery stories, many stores of non-essential products, bars, coffee shops, museums, venues of all kind, etc, were closed for months.

Many smaller enterprises and businesses have struggled to keep paying their employees when orders almost ceased. Many opted for lay-off and that affected millions of workers. Many self-employed people simply found themselves without any income.

Needless to say that domestic consumption nearly stopped for all the affected countries and all economic activities reliant on consumption were severely hurt or outright filled bankruptcy. All of this also resulted in many people losing their jobs or having too little income to pay all their bills.

All this happened for two or three months, which cumulatively led to most economies to be severely hurt. Think of it as a mini-2008 crisis but in a condensed format, with all the downsides happening in the span of a few months instead of several years.

There's also the financial aspect as well. Investors don't feel like investing when the economic world (and non-economic, for the most part) is in chaos, which led to stock crashes as well.

Depending on how long the pandemic goes, the effects might become more severe, even if some activities are being restored in the countries that successfully managed the outbreak. It this lasts for one or two years, it might have much deeper consequences than we are experiencing. Some sectors like cultural activities, sports and tourism have all but been frozen for the time being.

There's also an argument to be made about how states have been handling the outbreak and how the declaration of the state of emergency for the first time in decades (since the second World War in some countries) has impacted society as a whole. Hungary is an interesting example of that. Brazil and USA have also produced curious results in terms of response.

Within European countries the responses have also varied quite a bit, from countries that went o great lengths to reduce the spread of the virus early on and are now trying to get back to normal, versus countries that used less strict measures and now face a much larger death toll. If this has allowed their economies to recover faster only time will tell. But I think its fair to assume that the world economy is in for a rough period in the next couple of years, at best.

This pandemic Covid-19 is essentially a health crisis and to minimise the impact and spread of this crisis, countries after countries have adopted lock down and social distancing which are the best measures available so far. However, this lock down has its immediate impact on the economy. Stalled economic activities will adversely affect economic growth, employment, supply chain as well as effective demand leading to economic crisis. Julius Freeman Jr.

It takes a healthy population to have a productive society and a healthy economy.

They coincide with one another, the economic's of health-related problems related to economics are similar in product economy, How did a health crisis translate to an economic crisis? Why did the spread of the coronavirus bring the global economy to its knees? Since this question has a much broader answer, it relates to the economic crisis of jobs and it's problems relating to a global crunch and it impacts on societal and global values.