“COVID-19 IS CAUSING HEALTH EMERGENCIES AND ECONOMIC DISRUPTIONS THAT NO SINGLE STAKEHOLDER CAN ADDRESS” Said Klaus Schwab, Founder and Executive Chairman, World Economic Forum. His words came in the backdrop of increasing COVID-19 cases across the world effecting 672,086 and killing 31,191 people in 199 Countries.
The Major International Economic Organisations like World Bank, the International Monetary Fund, World Trade Organisation and the World Economic Forum is closely Monitoring the situation arising post the spread of pandemic across the globe.
DEMAND AND SUPPLY CHAIN:
Post the pandemic impact there increased a tremendous gap between Demand and supply chain. It was almost a shock for Supply chain. In these difficult times, one can hardly predict the ongoing crisis and relief thereafter. The Global economy is not in good shape and withstands the current crisis.
There is lots of difference between Developed Nations and Developing Nations, to keep away the citizens from the dreadful virus many Nations are going for complete shut down of their respective countries which includes Shut down of Non-essential production. Now this will have two consequences Firstly, the financial concerns and Job loss. The Latter will create more panic among the citizens who get anguished in times of terror only to add more chaos.
Both Developing and Developed Nations have many similarities which are boosting their Economic Position now and then. We will discuss how the sectors contributing to the development are affected;
- Hospitality and Travel
It is a great disaster as tourism alone counts 10% of the global GDP
Estimated Job loss is around 50Million.
Unfortunately, this will have a cascading effect on SME’s globally. Freelancers, Self-employed and the least paid workers who largely form the Unorganised sector are the worst hit category because of COVID-19.
According to IMF chief Kristalina Georgieva ” World has entered a recession as bad or worse than global crisis”. The Intensity of the crisis must be understood by her statements. Adding more to the crisis the COVID-19 has become unstoppable and Social distancing will be the only effective measure to prevent the Virus. So there is going to be an extension of Economic Crisis all over the world.
To boost the Confidence of Manufacturing sector, which is on a Holiday the Governments of US, India and other European Nations are announcing whooping relief packages to instil faith in the corporates, thus saving millions of Jobs. Not only Fiscal Policies but also Governments roped in their Central banks for better Monetary policies to bring relief to People.
Most of the Urban centred sectors are hit but to bring in relief the Rural parts of the world are doing their works without interruption, as most of the developing nations depend on Agrarian sector and allied activities, the governments are ensuring their well being in times of crisis as most of them cover under Essential commodities.
Uncertainty has become the new normal these days, so all the protective measures must ensure the good health of people and the economy too. So The World has to Unite in the fight against COVID-19, challenging Humanity and attain victory with Minimal loss