COVID 19 ECONOMIC EFFECTS

aamir iqbal
5 min readJul 5, 2020

SAVE LIVES OR SAVE THE ECONOMY!

It was 13 July when the COVID19 was declared as a pandemic by WHO. After this came a series of economic repression and the most affected countries due to that were the countries that were struggling to get a respectful status in the developing world. Even though the deaths in these countries were not even comparable to the 1st world countries but the economic loss these countries suffered is somehow unbearable and unimaginable. Although IMF granted so many funds to so many countries during the pandemic that`s not even a drop in the ocean.

EFFECT ON GDP:

GDP or gross domestic product in simple words is the amount of income a country earns in a year. Coronavirus has affected the GDP of almost every country in the world while some countries` GDP went to negative just because of this virus.

A PHOTO SHOWING THE SURVEY CONDUCTED ON WORLDWIDE GDP PUBLISHED ON STATISTA

EFFECT ON TOURISM INDUSTRY

Photo by Victor He on Unsplash

The tourism industry almost crashed due to this pandemic because almost all the countries shut down their borders and canceled all the international flights and even local tourism was shut down because social gatherings will lead to the spread of coronavirus.

According to the Mobility Market Outlook on COVID-19, the global revenue for the travel and tourism industry will be an estimated 447.4 billion U.S. dollars in 2020 — a decrease of around 34.7 percent from the previous year. Additionally, this is significantly lower than the original 2020 forecast of around 712 billion dollars.

LOCKDOWN -PREVENTION IS BETTER THAN CURE:

With the daily increase in the number of cases, countries started considering locking down the areas where the number of cases was high. This strategy worked fine for countries like CHINA, CANADA, AUSTRALIA, SPAIN but when it comes to 2nd world countries like Pakistan, India, Iran, Brazil this strategy just increased the number of unemployed in their countries and led to the devastation of their growing economies.

source: STATISTA

IMPACT ON INDUSTRIES

Industries are mainly the backbone of a country and putting them under lockdown was the riskiest step governments of different countries took. As industries could also lead to the spread of novel Coronavirus so they were also put under lockdown which led to the decline in the trade volume of many countries.

The Coronavirus outbreak had an impact on the exports and imports of businesses in the United Kingdom (UK). According to the results of a recent survey, the Coronavirus’ impact on the imports of businesses was more highly rated than its impact on exports. Almost one-quarter of all UK businesses surveyed stated that their import sector was affected.

However, the industries that benefited more from coronavirus was the gaming industry and the porn industry.

In the view of the coronavirus (COVID-19) spread and recommended social distancing, Pornhub recorded increased traffic in Russia in February and April 2020. The most noteworthy increase in the audience of the website in question was recorded on March 24, 2020, at over 57 percent. In April, daily traffic growth was recorded largely above the 20 percent rate.

GAMING INDUSTRY

The COVID-19 pandemic that spread across the world at the beginning of 2020 was not only a big threat to public health but also the entire entertainment industry. While cinemas and theaters closed their doors to try to stem the spread of the disease, many people turned to home entertainment and eSports during periods of self-isolation. During the peak of the crisis in March 2020, over 43 million hours of the top 50 games on Twitch were watched on one day on March 21.

However, the public sector and private sector local industries all over the world were very affected by this coronavirus. Many companies crashed, millions of people lost their lives all over the world. It led to a high inflation rate that ultimately means a lowered standard of living and a struggle between sections of the society.

INFLATION DUE TO COVID 19

A survey published by ERIN DUFFIN Shows that

Of the major developed and emerging economies, the country with the lowest inflation rate in April 2020 was Japan with 0.1 percent (compared to the same month of the previous year). On the other end of the spectrum, the country with the highest inflation rate was India with 5.5 percent as of March 2020.

ARE WE PREPARED ENOUGH FOR NEXT PANDEMIC?

CORONAVIRUS initially had a mortality rate of 1% only but most of the countries with the best healthcare system failed in front of this virus. Among them, the most notable one is ITALY which had a healthcare system ranked #2nd the world but the hospitals got filled up even in early stages and yet it has recorded 34k+ deaths which are a matter of great concern. Are we prepared enough to face another pandemic even deadlier than this? the answer is simple and it`s a big NO!

The reason is that we guys care for destruction more than construction. We guys have forgotten what we are and what is our purpose of life? We guys have created the weapons that can wipe out all the brilliant minds from the earth but all of our developments and advancements have failed miserably in front of a small virus. Billions and Billions of dollars are being spent worldwide to make weapons that can kill the people of other countries and you guys think that`something amazing. The defense is important but our values, our culture, our habitat is what defines a human. I am sure that this pandemic will give lessons to all the killers and warmongers to think about development in the field of science and technology instead of spending them on weapons that will do no good to humanity.

--

--

aamir iqbal

let me live, love, and say it well in good sentences.