Coronavirus and its impact on the global economy- Worknrby

Since the outbreak of the deadly pandemic disease named CODVID-19, a few months ago in Wuhan city of China has now shadowed over more than 190 countries globally. Till now, more than 4 lakh cases are confirmed positive and more than 18000 deaths have been marked globally. However, the disease is causing a threat to not only the lives of people but it could bring the entire economy in danger. 

Well, before discussing the possible global depression, let’s first understand what coronavirus is, from where did it originate and how it became a pandemic all over the world. 

Coronaviruses are a group of viruses that were originally found in mammals and birds. This virus attacks the respiratory system in the human body. Coronavirus can be transmitted from person-to-person through airborne droplets produced while coughing and sneezing, touching the infected surfaces or coming in contact with an infected individual in any way. 

Also, the symptoms in the people may appear within approximately 14 days of exposure to the virus. The virus popped up last year in December 2019 and the first reported case was seen on Dec 1, 2019. However, the origin of the virus is not confirmed yet and the investigations are still ongoing. 

The most common COVID-19 symptoms are: 

  • Fever

  • Cough

  • Shortness of Breath

Apart from losing thousands of lives worldwide, there can be an alarming downfall in the GDP rates of the countries and the entire global economy will suffer in the upcoming time. However, cooperation is the only right choice in the current situation.

Well, the economy recovery majorly lies on how China overcomes it. For the entire world, China is holding a very crucial place as the major source of demand and source of supply globally. It can be understood well through the following two points:

China is the world’s biggest producer of various components

Well, it is very well known to all that a major part of manufactured components are imported from China on a global scale. That’’s why China is considered to be the world’s biggest producer of manufactured components. And now, in this pandemic, when the thousands of the people in China have lost lives and the situation has gone worse; when the factories have shut down, everything from iPhones to small machinery outlets will suffer due to the inability to find the widgets thereof.

China’s economy control can help the world economy to be contained

Apart from being the largest component producer, the potential to contain the world economy also lies with China’s ability to recover from this global crisis. 

The economists say that if China will be successful in implementing control on the economy, the world’s economy will also get contained anyway.

Indian Government’s desk

Talking about the Indian government, Prime Minister Narendra Modi’s administration has unveiled Rs.1.7 lakh crores as the spending plan in order to curb the impact of the pandemic virus CODVID-19. 

Also, RBI has also taken an initiative by cutting the rates and reducing the repo rates for making loans cheaper and affordable. The reserve repo rate now stands at 4.4% and the reverse repo rate stands at 4%. All these steps have been taken for safeguarding the interest of the people and handling this situation with judicious care. 

However, the only way to conquer this pandemic is to stay at home and strictly follow the 21-day lockdown announced by the PM. This is the time when the entire world is in danger and ‘quarantine yourself’ is the only way to reduce the danger to some extent. We’re in the 2nd stage, and we have to take it seriously. Let’s hope for the best. Stay at home and be safe. Feel free to share your feedback.

 

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