Pandemics Threaten the Economies of the World’s

Countries now face the massive challenges of treating the corona virus strain officially identified by the who as the corona virus desease-19 or covid-19 for short. The pandemic that began in the city of Wuhan, China, has been a global shock because it has never before had we experienced such rapid and massive viral outbreaks of corona, far above SARS and mers, and ebola that were threatened only a few years ago, but was quickly overcome.

There has been much speculation regarding the origin of the virus, from what it calls animal, man-made, bat, to nothing less that suspects it to be a biological weapon deliberately created for some purpose.

 Of course we have no interest in further involvement in the polyemics and diverse preconceptions, for there is nothing more to occupy our attention and energy for the time being and the future, than the massive impact this covid-19 pandemic has on us. We can see in just a few months since its emergence in January past the covid-19 pandemic has had a very serious impact on almost every aspect of human life on earth. Especially in the economic sector — although if we would allow for an objective pandemic, it has also had a positive impact on improving ecol…

The biggest impact is to disrupt production, distribution, and consumption resulting from the level and scheme of transmitting viruses that attack the most fundamental aspect of all our human interaction, that is, physical human interaction to the point that we impose the distancing social/phsycal policies. As the main instrument driving economic activity, of course it will be profoundly impacted. Although our economy has already begun moving towards digital, it is not powerful enough to provide an alternative solution to the massive and extraordinary covid-19 pandemic.

The world/doers of both the large and medium scale are now beginning to scale. Input and economic output processes crash. Many companies have shut down businesses and factories as a result of the decline in the production of the market and the shortage of exports and the drop in turnover

Then employment stops were everywhere, including factory workers, hotel employees, transport businesses, transport transfers, tourist routes, and many other services.

Micro business flanking institution, sector rill, until farmer, trader, fisherman, and laborers who rely on daily income experience even more paragons’ impact to pagan susceptible conditions and the threat of starvation.

At this point we have been unable to determine when the covid-19 pandemic will end, which clearly will result in both local, regional, and international economic activity of both levels of local, regional, and international trade will be affected by uncertainty, even to the threat of a complete stop. Our country, although we have vast natural resources, has not been able to create economic independence and so is dependence on other countries. Compounded by the covid-19 pandemic, it is clear that our economic growth target will not be reached.

To minimize the growing number of infections, some countries such as Italy, Spain, have made India a policy of lockdown, while others, including Indonesia, prefer to impose social incentives for their citizens. These policies certainly do affect the economy. Not only in Indonesia, the economic growth resulting from the corona virus pandemic occurs evenly around the world. Here are some of the effects of the corona virus on the global economy.

The world’s economic growth is declining

 The corona virus pandemic causes many large institutions and Banks to decide to change the estimated conditions of the global economy OECD, including (the organisation for economic co-operation and development)

In recent times, the oecd said that the growth of China’s gross domestic product would be the largest decline. China is expected to experience economic growth until just it 4,9 percent. hush was slower than previous estimates, which reached 5,7 percent.

 This certainly has bad effects on the global economy. The oecd estimates that the covid-19 will bring the global economy down to 2.4 percent by 2020, down from previous projections to 2.9 percent.

 Magnitude of the threat PHK

 Restrictions being imposed in several countries regarding the corona pandemic, have enabled many mills to operate. Apple, jaguar, diageo, land rover to Volkswagen, is a handful of large factories that have now begun to restrict production. For example, bloomberg economics noted huge manufacturers in China using only 60-70 percent of their production capacity, even some in the most affected countries, such as Italy, were reportedly forced to halt their production. It was this decrease in production that triggered massive layoffs, and a wave of unemployment was difficult to avoid. This is expected to cause significant economic downturn, especially in developing countries like India, and others.

 Stock market’s turnin

 According to Cedric chehab, head of national risk and global strategy at fitch solutions, fear of the effects of the corona virus globally, will leave investors unwilling to invest. On the other hand, even global fear would lower the market share prices. While on the other hand, concern over the global distribution of the corona virus has encouraged investors to bid the bond price down to the lowest point. This condition is compounded with uncertainty about the economic direction associated with the widespread impact of covid-19. These effects are expected to continue until the time of the corona virus pandemic is complete.

The travel industry hit the hardest

The decisions of some countries that loc kouts and visitors to the corona virus pandemic, leave businesses that are wrapped up in tourism, such as hotels, travel agents, aviation, and so on, devastated.

 According to the Indonesian agent travel association (astindo), Pauline suharno, since February at least 20 major travel agents in Indonesia have been forced to offer offshore leave for inroads, including their employees’ salaries.

 This condition not only occurs in Indonesia but also occurs globally. Even for countries that choose to take away lockdown’s policies, they should willingly lose revenue from those businesses. Let’s just say Italy and Spain were badly affected by covid-19.

Economic recovery can be more difficult

 Bloomberg economics assumes that economic recovery due to the corona virus pandemic could take a longer time to return to normal levels. This restoration pattern could shape the ‘u’ pattern, not the ‘v’ pattern that many predicted.

 On the other hand, the company’s vice President director, made-in-china, who predicts production figures in China will not reach a maximum level, even if factory workers are back at work. This is due to supply chain drag that limits production capacity.

 A disruption of supply chains would render workers housed during the pandemic, not necessarily ordered back to work. The impact will come back to people’s purchasing power that will be difficult to rise, and economic uncertainty will still occur.

Written by: Rhena Kurnia

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