According to recent research by the IMF stated that the global economy would shrink by over 3 percent by 2020. The rapidly spreading virus, COVID-19 is taking a toll on the economy throughout the world. Several nations turned to a complete lockdown to flatten the curve of the infection transmitted by the virus. As a result of lockdown, millions of citizens lost their jobs and companies got shut. It further resulted in the downfall of the economic activity.
Though various market opinions are misleading, the recessionary risk is genuine. The liability of the major economies is struggling hard to absorb the shock. Multiple businesses are grappling with lost revenue market and interrupted supply chains as businesses shutdowns and quarantine measures spread across the world, restricting transportation and commerce. Along with the market shut down, unemployment is hiking like never before. Financial space across the world is battling to increase the economy by burdening the citizens with monetary measures, is under a lot of pressure.
Trading- 2020 and Beyond
The shock of the pandemic is never-ending, and it is disrupting the lives of people. Lockdown affected hotels, restaurants, and e-commerce platform, resulting in the loss of revenue along with the transportation as the spread of infection is mostly through travelling. Yet, under all these circumstances, one cannot foresee the future of trade performances. Whether the trade will drop or rise to a new beginning for the rest of the year, or whether it will be stagnant without any improvement nor hike.
Even though each crisis is different in various terms, the only solutions for any economic recovery from the recession are for the policymakers to learn from the given situations to merge them with the talent, capabilities, and last but not least the infrastructure needed for long-term resilience. Countries can also start adjusting their present taxation systems to offer citizens with additional relief.
As part of recovery planning, the nations can rely on ways to restore their employment, GDP and consumption. They can implement these by conducting campaigns to stimulate the local economies, mainly focusing on small businesses and funding for venture-backed companies. Moreover, the pressure on the financial sector to focus on the short term is vast. The nations can implement the “the next-normal” step to be a long-term plan by keeping the recovery plans in mind.
The most asked questions about the economy and coronavirus is how the businesses will function after the outbreak, even if they do, are the jobs secured? What about Travel? How will post-coronavirus time look like? We should find the answers to these questions as it is not easy. But, we must know that we should not let the darkness inside and lose hope. Instead, we must find solutions for these risks and problems to build a better future.