3 Reasons for the Economy Sink during this Coronavirus Pandemic.

Coronavirus turns the World upside down

The battle against the deadly Coronavirus Covid-19 has turned into a war. China appears to have won the first battle. Hong Kong,  Singapore and Japan have also pursued notable successes in reducing the Pandemic, no ambiguity, due to their experiences dealing with the 2003 SARS epidemic. Europe and America, on the other hand, are merely waking up to the illusion of invalidation. As a result, its outbreak now spread throughout the West.

By far, the most difficult western country is Italy, which has a particularly strong economic relationship with China. Northern Italy is the new Wuhan. Overwhelmed by its health system, the Italian government, at a break, shut down the retail economy and pacified the entire country. All shops are closed except Pharmacies and Grocery stores. People are instructed to stay at home and can only enter public places to do the necessary shopping.  Until Coronovirus dies, Italy is attempting to slow down the economic clock.

Reasons behind the Economy Sink in CoronaVirus 

1.  Globally, not every response to the crisis have been well-targeted, and others have not been sufficiently strong. The anticipated rush of hospitals in many affected areas has already exposed such decency.

  On the economic front, a severe recession cannot be avoided, and some economists are already calling on governments to introduce measures to reduce aggregate demand. But this recommendation is ineffectual, given that the global economy suffers from an unusual supply shock because people are not at work; mainly they are ill or quarantined. In such a situation, demand stimulus would boost inflation, potentially creating a deadlock when another valuable output-input was in short supply.

2.  Epidemiologists say the need to make stock markets crashed by a brutal decline in economic activity is inevitable, noting that central banks’ policy of extremely cheap money and deposit liabilities has created a volatile bubble. Because they used their ammunition in importune moments, central banks take responsibility for the bubble that has now burst.

3.  Quarantine hit everyone hard. The spread of the Deadly virus has shown incredible results for the world. But this has left the industrial sector in a disastrous state. Closure of factories and companies leads to significant economic losses. Even though some companies choose to work from home scheme, it is not as useful as working off-premises.

Measures:

Fiscal measures are needed to protect companies and banks from bankruptcy so that they can recover quickly after the epidemic ends. Coronavirus is highly contagious and mainly spreads from person-to-person through close contact or from the respiratory droplets generated when the infected person coughs or sneezes.

Therefore, health professionals recommend that you should isolate yourself and stay at home to prevent yourself from this deadly virus. The deteriorating situation requires companies to adopt proactive measures such as moving their business from offline to online.

We saw an augmenting on-demand economy, and with the epidemic novel Coronavirus, the adoption of on-demand apps becomes extremely necessary not only to increase the benefits but also to provide relief to the people during this rough time. It also reduces the spread of this malicious virus as it reduced human contact almost to zero.

Final Words

Undoubtedly, the whole world is facing a disastrous situation, but we are all in it together. Surrender to epidemics is not an option; We have to fight against it.

We must not only take precautionary measures to stop the spread but also to save the sinking economy; Otherwise, we will all face a terrible situation after this episode of the epidemic ends.

Changing your business from offline to online is a step towards the growth of the economy.

If you’re new to this, don’t worry; we are here for you.

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