Covid19 Brings Economy under the Weather

Team Startup CityThe Covid 19 pandemic has brought the whole world into a stand still. Human life and their endeavours are adversely impacted by the eruption of this contagious virus. Social distancing, keeping oneself at quarantine and thrusting a global lockdown have been the only antidote known to evade its massive explosion. However, this lockdown has banefully struck the economic system, jeopardized the business activities, leading to circumstances causing lay-offs.

• COVID-19 outbreak has been declared as the sixth public health emergency of international concern on 30 Jan 2020 by the WHO

• For each month there will be an approximate loss of 2 per cent points in annual GDP growth

• Economy of many so called powerful countries are now facing the threat of high inflation and increasing unemployment

The economic immobility and degradation has entailed economists to evaluate the situation and present foreshow of the kind of ball game the business environment is and will be living through in the coming time. If analyses are to be taken into consideration than the global economic growth is expected to plunge down drastically. A rough calculation says that the global GDP loss could be over nine trillion dollar. Even if all the countries in the world
put all their efforts together this depletion is not evitable as the main source of revenue depend largely on tourism, travel, hospitality, and entertainment and all these sectors are extremely disrupted. This collapsing economy will not spare the new emerging markets nor will it allow the newly established businesses gain quite agreeable support to gain momentum in the environment. Yet, it is predicted that this detriment is likely to be on the mend by 2021only if and only if this coronavirus pandemic causes no further hindrance to the normal functioning of the day to day life. But if it is not petered out soon than there are vulnerable chances of high debts, temporary shutdown, financial crunches, negative growth rates, recession and a bleak market.

“The correct Covid-19 response isn’t a wartime economy – with massive upscaling of production. Rather, we need an “anti-wartime” economy and a massive scaling back of production,” - James Meadway, Economist.

The irresolution of this sitch can bring a steep slope in the IIP and the GDP is anticipated to slope steeply down. Since the impact is set on all the industries the monetary as well the production activities is to be on depression. Even when the lockdown is lifted the recuperation will be extremely sluggish, the working class and the blue-collar workers are to experience a tough time for many months. To boot, the current fiscal year’s normal functioning is not expected to take velocity very soon, although there are constant efforts being made to fish out appropriate chances and rooms to manoeuvre to put the pursuits back on the galloping horse. While established firms are on their endeavour to push their business onwards, the startup ecosystem is sensing activities where the budding minds are looking around for latitudes that can help them sustain this unfavourable situation.

On the other hand, several industry bodies have called up a number of initiatives and asked the government to leniently give its consent on the approaches assumed to take the edge off the financial edginess from every business person. Resource persons are coming up with proposed actions ad strategies that are required for bringing conformity in the business environment. Since the impact is not the same for all, an even constancy is definitely not a wise to assume. On the brighter end, the news on the partial opening and permission granted to carry out business activities has stirred up hopes of the people.