After Effect of Covid-19 on the World Economy
Lockdown is gradually been eased in different parts of the world and some countries have returned to work when others have started to record a certain level of stability back in the economic movement. China was first hit with this pandemic and it greatly affected a lot of things in the country but report has dictated that the country seem to be back now recording that they have their economic activity back at 90%.
Recording that an economic level is back at 90% so fast is indeed an encouraging step at this time but we still have so many people losing their jobs constantly even as things are gradually returning to normal, some businesses and ventures cannot stand the heat of the change and this means they are going to collapse, their collapsing means that their workers will get laid off and that will increase the level of unemployment in the country.
Like China, 90% looks like a good level of improvement that a lot of countries might even try to emulate but societal activities will never be the same.
The after effect of the pandemic will be almost felt by every sector, the buying pattern of people have changed, a lot of citizens now understand the things they really do need as their value of income has changed and has subjected them to lesser funds making them focus on really necessary and important items.
Some business owners have taken loans immediately the lock down was relieved and they have calculated that they will be able to get business back in shape, but unfortunately the spending habit of people have changed and there is no much market, already some businesses have had to close right back and others even file for bankruptcy as they were not able to cover the loans taken.
The proposed recession however, will not be equally felt by everyone at the same rate or level, some set of individuals will feel a stronger impact than the rest. Majority of those who are certain to lose their jobs are the low skilled workers who may not be earning much in the first place, although some of those who earn high might also have their salaries slashed, the effect will not be as high as the low income earners.
Some tech-companies still have their workers work from home, these level of individuals may most likely not lose their jobs to the pandemic but may also get affected by the high cost of products in the market, and their regular income may no longer be able to meet their regular demands.
Reference
https://foreignpolicy.com/2020/03/25/europe-china-us-economic-recovery-v-coronavirus/
All countries have gone through a similar process, the fall of the economy, unlike China for example, for underdeveloped countries is not so easy to get up from such an economic blow, they being a developed country can solve many things, but unfortunately that is not our reality.
China has a clear edge in so many areas I agree.
a new model of work and life is presented to us and we are getting used to it little by little.
May be we have no other choice than to adapt to the system.
@ojerinde COVID-19 has brought all the economy into meltdown. If this continues their will be huge effect on everyone's life in underdeveloped countries people their will be scarcity of basic needs.
Underdeveloped countries will feel the impact more just like the low income earners will also feel the impact more.