COVID-19 Pandemic and its Impact on Economy 

COVID-19 Pandemic and its Impact on Economy 

In the beginning of 2020, the spread of COVID-19 is declared as a health emergency, by World Health Organization. Later on, an announcement was made that the outbreak of Corona virus is officially a pandemic on March 11, 2020. The health emergency is transformed into an economic crisis, which destroyed 90 trillion dollars of global economy. We are living in a globalized and a highly interconnected world, where everything affects everything. The spread of viral infection between and across countries, demonstrated the connectedness of world economy. 

COVID pandemic is a highly personal experience as well as it has world-wide effects. It has surpassed all the previous pandemics in terms of death rate and economic fallout. It has equally disrupted all the countries, whether rich or poor. It is estimated that the pandemic has decreased the global economic growth to a rate of around -3.2% and global trade has fallen by 5.3% in 2020. 

Particularly, the extended health crisis is the major reason of global economic fallout. New variants and waves of COVID pandemic, large number of infected individuals and resistance among certain populations for vaccination, further devastated the economic system.  New waves of COVID and renewed calls for lockdowns is the major reason of economic fallout. This fallout disturbed different economic sectors. 

European Center for Prevention and Disease Control (ECDC) stated that, “the delta variant of the virus could account for 90% of infections and lead to a fast and significant increase in daily cases in all age groups.” World Health Organization predicted that, “by November 1, 2021, the deadly virus had affected over 246.6 million people with over 5 million fatalities, all around the globe”. “There was a time when around 80 countries had closed their borders, ordered businesses to close, instructed their populations to self quarantine, and closed schools to an estimated 1.5 billion children”. 

The Bureau of Economic Analysis  (BEA) claimed that, “the policy actions to lock down the economy pushed the US GDP growth rate down to 9% in the 2nd quarter of 2020, which is the largest decline in US GDP over the past seven decades. Different sectors of economy experienced slower growth as a result of labour and supply-chain shortages”.

The pandemic has clearly manifested the failure of capital economy, in which profit is everything. The COVID-19 virus is already known, but not even a single pharmaceutical company paid heed to develop its vaccine, as it wasn’t “profitable”. It took 12-18 months, to develop a vaccine for it. If the vaccine is already available, the devastation could have been prevented. 

The pandemic not only affected our lives, but it has revolutionised our ways of life and economy. With lockdown and social distancing measures consumers behaviour is completely transformed. A socially just and inclusive society is necessary for coping with the post-pandemic challenges. There is a need of global cooperation and a resilient planning to fight with these challenges. A resilient mind-set for the well-being of population is required. We need to shift our priorities from boosting competition, profit and growth of personal business to the welfare of masses.

 

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