Economics and Coronavirus
A global virus that kept us confined in our homes for months is changing the world economics. Some changes which we are yet to see in the coming time will be unfamiliar and unsettling to most of us.
The spread of the coronavirus has derailed/destroyed economic growth around the globe. As the pandemic has spread across the world, concerns have shifted from manufacturing, supply chain issues to decreased business in the services sector.
Most countries around the world have implemented lockdown policies to control the spread of the coronavirus. The direct impact of lockdown policies will be severe fallout in the labour market. It will have instantaneous repercussions on daily economic activity and GDP of the country. When GDP falls, it will lead to less spending by businesses and consumers which drives the markets lower.
Companies globally will be forced to cut jobs. Small and Medium businesses (also big business) in all sectors will have huge impact. Less Cash flow, Less Liquidity, People losing jobs all going to happen. Unemployment records even in developed countries like the US, Canada, Spain, etc. have smashed all records.