How Covid-19 Has Affected the Global Economy
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The world is facing something which it hasn't in the past few decades and this is what is leading precisely to the global economic crisis. The world has changed and everything is stuck or if considered moving then at a very slow pace. Yes, and all this has happened due to the reason behind the global pandemic going on and that is COVID 19.
The first case of this extremely despicable, pathetic, and deadly Corona Virus was found on 30th January 2020, in India. Since then the COVID cases accelerated at a rate that became indestructible slowly all around the globe, even after the whole world went under unanimous lockdown. Lockdown enabled stationary life, where everything halted and everyone was merely concerned about anything else but their lives. And this pandemic has led everyone to understand the importance of the precious life we are given by God, over everything else.
The Pandemic the world is going through for the past 6 months has affected the world in every possible way and has affected every economic sector adversely. Over the years the stability that every economic sector has gained went into vain in just the past 6 months due to global shut down. Calling a unanimous shutdown globally the world has faced the conditions in every sector which are pathetically antagonistic. If we were ever asked to imagine a stationary world in which we are living right now, was almost impossible six months back. And now dwelling the normal life we used to live a few months back is very hard to visualize.
The impacts of global shut down have led to the downfall of the stock market which is awful compared to the past few decades. With most of the economic activities that are suspended due to, many nations facing extended lockdowns. The current scenario of the world and US economy is alarming which will start comprehending rehabilitation in 2021 and nowhere before that.
It all initiated earlier this year in February when the stock market, had to face the tragic downfall since 1931, which struck the ground on 24th March and backfired lately. GDP dropped off to 4.8%, which was abruptest since the tremendous recession.
The United States, the country which is said to be the most stable nation economically is confronting a severe economic humiliation which is proving to be massively disastrous for the nation. The uplifting recession arriving in, the unemployment rate is rising at a massive rate, with lots of businesses getting shut down and weakening of the manpower ultimately. The conditions will not be improvising rapidly and a lot of country people will be facing an enormous financial catastrophe for next approximately a year. People are becoming jobless and it's becoming very arduous to manage their living and are eventually facing an enormous financial crisis.
The depression in Crude oil tariffs which are at their lowest level ever and oil industries are already encountering the enormous obligations, if they confront an ineptitude to reimburse their deficits in duration, the outcomes will prove to be horrendous for the banking sector. As banks will incur huge losses. Even the insurance sector has already begun facing dropping graphs.
The most affected sector which is not going to renovate in the next few months or maybe a year is the Travel And Tourism Industry. No matter how much the restrictions get uplifted still people will be barring themselves from traveling and touring because that is the main cause of the spread of this deadly disease. Therefore, let it be domestic tourism or international tourism both sectors will be facing the crisis more than any other sector. Although we may discern less downfall in domestic than compared to international tourism because domestic traveling may be prevailing in at a slower pace which may help in its uplifting somehow more than the other. Hotels, restaurants, resorts, casinos, bars, and the retail industry will keep facing a declining impact on them for the next few months.