Explained: How Covid-19 has affected Global economic balance? 

The economic impact of the 2020 coronavirus pandemic in India has been largely disruptive. The pandemic has pushed the global economy into a recession, which means the economy starts shrinking and growth stops. In the US, Covid-19-related disruptions have led to millions filing for unemployment benefits. The only thing certain about the current global economic outlook is that it is uncertain – whether it be when the pandemic will be ‘over’, or the comparative impact of the immediate health crisis and subsequent economic dislocation.

The global economy is engulfed in a health crisis. We have seen governments around the world respond to the health and economic crisis in a swift, but largely uncoordinated manner which is unsurprising given there is a no ‘one size fits all’ policy response to this situation. We are already starting to see how these different health strategies are flowing through to the real economy in various countries and territories. What remains uncertain though is how sharp the contraction in economic activity and employment will be in the short term, and conversely, when and how quickly economic activity and employment will rebound.

Covid-19 has caused damage across sectors in the country, resulting in mass layoffs and pay cuts. The grim economic outlook and financial uncertainty has hit the money life of salaried individuals and professionals significantly. According to a survey conducted by IndiaLends, a digital lending platform, 82% of the respondents said they are struggling to make ends meet.
This pandemic affected workers of unorganised sector mostly who are daily wager or those working in Micro, Small and Medium Enterprises left them jobless, and rapidly increased the unemployment rate, left no alternate income source. Everyone is witnessing their painful migration on foot and cycles to their homes but now some sort of help has been extended by states by way of running some special trains. After lockdown, giving them employment is a very necessary step, lack of which forced them to leave their home. They may not die from corona but will die definitely from starvation.

The revenue of the tourism sector got down due to a strict ban on both domestic and international flights. Even many tourists got themselves cancelled. Meetings, conferences and major international events got cancelled like mobile world congress, Olympic, Wimbledon, Cannes international film festival and Facebook F8 which lead to huge losses. Earlier there were a huge number of Indian travellers to both domestic and international destinations but now nobody is willing to go anywhere. According to the Indian Association of tour operators, the hotel, aviation and travel sector together may incur a loss of around 8,500 crores due to the restriction imposed by the Indian government on the movement of flights.

COVID-19 has exposed the vulnerabilities of healthcare systems. As we know that access to healthcare is a fundamental right but the fear of COVID-19 everywhere has in turn affected may people’s primary healthcare provisions. This pandemic has made impossible for the pregnant women to visit obstetrician for prenatal checkups and instead of this, opting for telemedicine. Many hospitals are mainly focusing only on COVID-19 patients and due to this, they are ignoring other people who are suffering from some other major problems like cancer and found it difficult to get proper treatment. If this will be continued the death rate from corona will be lower than the death rate from other diseases. This pandemic has taught a lesson that temples, statues and museums are not a necessary requirement but the hospital with world-class infrastructure is. Even there can be seen an adverse impact on the profitability of medical device manufacturer who imports consumables, disposables and capital equipment from china.

With fears of a new downturn and financial collapse, times like these call for flexible and strong leadership in healthcare, business, government and wider society. Immediate relief measures need to be implemented and adjusted for those that may fall through the cracks. Medium and long term planning is needed to re-balance and re-energise the economy following this crisis. A broad socio-economic development plan including sector by sector plans and an ecosystem that encourages entrepreneurship is also needed so that those with sturdy and sustainable business models can flourish.

Other pandemics like COVID-19 can hit the world. But none of these should be able to destroy us or our economy. We should stand strong and fight against these epidemics and help uplift our society. For this to happen each and every individual should also take care of one’s own health.

You can reduce your chances of being infected or spreading COVID-19 by taking some simple precautions: 

• Regularly and thoroughly clean your hands with an alcohol-based hand rub or wash them with soap and water.
• Maintain at least 1 metre (3 feet) distance between yourself and others.
• Avoid going to crowded places.
• Avoid touching eyes, nose and mouth.
•  Make sure you, and the people around you, follow good respiratory hygiene. This means covering your mouth and nose with your bent elbow or tissue when you cough or sneeze. Then dispose of the used tissue immediately and wash your hands.
• Stay home and self-isolate even with minor symptoms such as cough, headache, mild fever, until you recover. Have someone bring you supplies. If you need to leave your house, wear a mask to avoid infecting others.
• If you have a fever, cough and difficulty breathing, seek medical attention, but call by telephone in advance if possible and follow the directions of your local health authority.