COVID-19: Looming Economic Crisis: Possible Measures
TheCodeWork Team | 9 April 2020
Table of Contents
URL copied to clipboard!
Share this article
Reading Time: 4minutes
Coronaviruses are a cluster of correlated viruses that result in various infections in animals as well as in birds. In human beings, the coronaviruses end up in respiratory tract toxicities that are insignificant in some cases, like the common cold. But in some cases it gets lethal, for instance, the SARS, MERS, as well as COVID-19.
COVID-19: Affect the human body
Coronaviruses typically attack the human respiratory system. It happens to be a group of tissues that helps humans to breathe. Respiratory diseases affect diverse portions of this respiratory structure. It infects the coating of the esophagus, air route, as well as lungs. Initial signs of being affected by the coronavirus might comprise intense coughing or else breathing problems and fever. In certain cases, it might result in severe impairment to the lungs.
COVID-19: Affects on Entrepreneurs and Finance
The COVID-19 has been spreading across the world like wildfire and has been impacting people in the worst ways possible. And though we are yet to comprehend the incalculable influence that will trail the pandemic owing to the local as well as nation-wide lockdowns, the shutting of innumerable trades and businesses, already have a severe economic shock worldwide.
Being in Quarantine: Large-scale isolation, travel limitations, as well as social-distancing actions, has driven a stiff fall in customer and business expenditure, creating a huge scale recession. Though the pandemic has been contained in some parts of the world, the grave statistics of a recession has kicked into the market as per the IMF chief (Kristalina Georgieva). Customers stay home, industries lose income and fire their employees and joblessness levels are expected to rise gradually. Business speculation agreements and commercial bankruptcies are expected to soar, hitting the banking as well as the financial organizations significantly.
Demand Graph: Demand has been dipping as customers cut their expenditure during the course of the global lockdown. In the red alert zones of the pandemic, the number of business dismissals, as well as bankruptcies, is expected to soar, nourishing a self-reinforcing descending economic structure. The economic system is already suffering from huge distress, nevertheless, a full-blown banking institutional crisis is expected to be avoided for the reason that banks have a strong capital pool. This will also help entrepreneurs and businesses avoid risks and losses.
As of now, commercial entrepreneurs, in precise, are the ones who have remained significantly impacted through the COVID-19 pandemic, financially. From advertising as well as marketing to work-related analysis, businesses have always been forced to constantly adjust to the altering tides of the world and society. In our investigation, three broad financial situations might come up: a quick retrieval, a world-wide economic slowdown, besides a global recession. We hope that the rampant pessimistic plot gets overshadowed by the prospect of a more positive economic consequence to the COVID-19 outbreak.
Scenarios for the economic impact of the COVID-19 crisis GDP impact of COVID-19 spread, public health response and economic policies
Possible measures to reduce negative impacts
What is the way to survive this biological disaster, with the traditional calculations and other conventions have been reduced to irrelevance?
The answer is stretched across five basic points to evolve from this crisis to our normal lives:
Resolve: The first thing to do in this catastrophe is to address and resolve the immediate effects of the pandemic on the company’s customer base, technological aid, working for staff and last but not least, business associates.
Resilience: The next thing to address is the near-term currency managing challenges as well as wider resilience problems throughout the global lockdown and financial drooping effects.
Supply chain stabilization: The businesses and corporations should start chalking a plan about how to manage the spike in demands once everything returns to normal.
Employee safety: The local managers(consistent with WHO, CDC, and other health-agency guidelines) should be provided with lucid and transparent verbal communication on the guidelines of dealing with the pandemic as per WHO, so they feel empowered to deal with any quickly evolving situation.
Reform: Be prepared to reform business plan according to the changes that are expected to take place in the global market as a result of the lockdown and dipping in the world economy. Together, these five phases reflect on the ways to tackle the fight against COVID-19 so that we are able to find a way out of this pandemic to a stable economy.
The COVID-19 happens to be the consequence of the novel coronavirus, which started in the city of Wuhan, China in the month of November last year. Slowly it spread to different corners of the world which resulted in the WHO announcing it as a world pandemic. At present, the world has announced a global lockdown to control the spread of the highly contagious disease which is, in turn, impacting the global economy in the worst way possible.
In a nutshell, curtailing COVID-19’s enduring economic impact while handling at-risk agreements will be requiring discipline, attention, as well as assurance to a visualization that lies beyond the critical moment, embarked upon us, at present. Utilizing this time wisely will help you combine the virtual openings presented by the moment, and then you may be able to emerge in a much better profile than you could have ever visualized.
Our Content Team at TheCodeWork believes in quality content. We write everything related to startups and products at large. We publish our blog every alternate Wednesday. Subscribe to our newsletter to get notified of our awesome content.