In very recent times, our known planet has changed drastically resulting from the ongoing coronavirus pandemic several countries have taken preventive measures like restriction on movement, self-isolation, quarantine, lockdown, etc to cut down the spreading of super infectious coronavirus. lockdown, quarantine, social distancing are some of the lesser-known facts that we are now getting familiar with when the pandemic situation is getting worse over the times. this shut-off situation has made a negative impact on the global economy. In many countries, this global crisis brings economic growth to the edge of extinction.
Meltdown in the stock market:
In many countries, the Stock market is facing a downfall situation during this lockdown. Except for the healthcare sectors, As many multinational companies have been forced to limit their production and profit margin. This Investor has found it risky to Finance their money. Many of the companies whose shares are considered as a blue-chip now turn into the bankrupt situation.
In response, central banks in many countries have cut interest rates. That should make it cheaper borrowing and stimulate spending to boost the economy.
Uncertain future for the small entrepreneurs: small businessmen are forced to shut down their business as they found it difficult to sell their product as people with lower income have significantly reduced their purchase ability.
A tough year for the jobseekers: as the rate of unemployment has increased in many major countries. Many people have lost their job. since very few employment opportunities have been created during this period. Jobseekers in many countries hardly manage a job. Millions of workers have also been relying on government subsidies and some beneficiary schemes are also running for the survival of lower income people as parts of the economy.
Economic recession is inevitable for some countries: creating new job opportunity, accumulating of wealth are the signs of a growing economy. Percentage op positive changes in Gross domestic product(GDP) are the indication of a rising economy.In an estimation, conducted by IMF found hat the global economy decreased by 4.4% in 2020. The institution characterized the decline as the worst since the recession that the world has experience lastly.
Travel and tourism business
The travel and tourism industry have been damaged badly.Many countries curtailed the number of domestic and international flights in this lockdown situation.The tourism sector has been hit hard, as many countries sealed their border,millions of hospitality relevant jobs along with many companies bankruptcy for this sector to the periphery of financial havoc many analysts speculate that international travel and tourism sector won’t retain it’s original position until the year of 2025.
Dependency on online food delivery system: As social gatherings raise the risk of virus transmission. People are forced to depend on alternative dining options.Many prefer to order their food through online food delivery apps.