Impact of covid-19 on economy has not only created chaos and confusion at each and every one of us. But it has also proven to be a great disruption for our common sense of health. As well as our financial condition as people all around the globe are facing economic uncertainty. Job loss and lack of income due to covid 19 itself which has brought more misery into each and everyone of us. Without knowing what lies ahead of us that we may face in future and how prepared we can be for any such scenario.
The following is an overview of what Covid-19 on Economy actually means to the world and its effect on different sectors of our life.
With this virus affecting so many parts of the world’s population it is now not just the country or province that will be affected by the pandemic but also the whole nations, region, continent, etc. Due to these large number of infections caused due to covid-19 on economy, many countries have started locking down their borders and having strict border controls and surveillance to prevent further spread.
It will take some time for the economies of other countries to come back to normal as compared to previous times when the government was implementing stringent shutdowns, lockdowns and curfews. This pandemic will eventually bring better days like 2020 has brought in 2019 because businesses and companies are slowly returning and many even though they remain closed for now but are starting opening their doors again.
Due to the fact that most countries’ population is still very vulnerable to the virus, it is expected that restrictions will stay in place until herd immunity reaches a certain point where an equal level of protection is given to those who got infected with covid-19 on economy. Some factors including public health and social distancing is helping us get closer to achieving herd immunity. But there are various challenges in achieving this and that includes availability of medical equipment and facilities.
As of now no vaccine is available and only one type of vaccine can be used to save humankind from the deadly consequences of severe disease and death. Though there is hope through vaccines that we can find for once that would be able to make human lives easier and safer but to be honest no one knows that the vaccine that can be released before the end of 2021 is safe due to the unknown health risks associated with it. Till then more research has to be done to get a vaccine approved or made.
Due to the lockdown and curfew imposed by many countries to stop the outbreak that affects them badly, the economic situation has changed in the cities as well as the villages too. Now, majority of us are stuck in homes as it is difficult to go out and move around outside.
How COVID-19 affected Pakistan’s economy?
Due to such economic hardships many families even lose their jobs but luckily few are finding work and getting paid. That’s why many people of the cities are migrating to suburbs and living in apartments and houses instead of flats or big houses. Such migration however can turn out to be negative, as the housing bubble continues to burst.
Because of movement restrictions, people have lost employment opportunities and that has forced many people that were looking for good careers to migrate to greener pastures. The entire supply chain of industrial and physical products that are produced is now disrupted especially in the transportation sector due to limited or no access to roads.
One major concern about such industries is how durable the raw materials are. Thus if a material is produced in such conditions then the product may become less durable and durable goods can lead to loss of jobs. Therefore, those that might want to pursue science and technology related fields have migrated to areas where the climate is appropriate and suitable for production of raw materials which is more eco-friendly.
Those have been left behind to work in low paying jobs by either switching to freelancing or finding others online and selling their own services. Many parents, teachers and students have turned to the service of Amazon and eBay and other websites to earn money. Others want to earn enough money to buy food. They do try not to spend much on restaurants like we did during lockdown months. After such drastic changes in working patterns, the people who had used to live very close to their relatives have moved further away and are now moving to bigger places with the same family members.
With such rapid change in lifestyles due to covid-19 on economy, some people even went back and forth between cities which made them disconnected from each other and unable to maintain proper contact. Not only that more people have had to relocate to rural areas due to the lockdown where everything remains closed and nobody can enter or leave.
There are almost 10 million people who live in poverty, who used to live in urban areas, who were forced to shift to smaller towns as their locales were locked up. People even migrated from city to small town due to the fear of coronavirus as they could hardly open their door and are forced to use hand sanitizer as a mask. In villages, the prices of vegetables have increased which has impacted the farmers directly and it has led to the farmers having to pay higher rates. With the reduction in wages and increase in prices of produce many farmers are losing their business and jobs.
Due to such alarming situation, many communities are moving towards remote locations. According to data provided to World Bank shows that more than 1.3 billion citizens in South Asia (Bangladesh, Bhutan, India) and 3 billion in Bangladesh lived within 15 km of a road. So due to the increasing cases of covid-19 on economy people are thinking about leaving the cities and living closer to villages.
A lot of people are thinking about moving to faraway places and start earning money as there aren’t too many jobs in big cities. All through all, the price of basic commodities like electricity and fuel has risen due to the crisis. Even though the price of oil has increased, the oil market is still stable even though it seems like the global oil prices have increased drastically.
Due to this economic crisis being faced by many people, unemployment rates are still high. Millions of people remain unemployed due to covid-19 on economy that has taken a huge toll on their lives and is now leading millions of people to migrate away. Unemployment is known to occur due to the poor working conditions and conditions in the workplace.
Employers may lay off their employees due to the rising costs of hiring new workers as well as temporary layoffs. At present, numerous people including migrant workers and farm laborers earn as little as $5 an hour. In addition, international organizations such as UNFPA, International Labor Organization, IMF, World Economic Forum and WHO have warned of the dire financial situation of thousands who are out of work because of covid-19 on economy, millions of whom are women and children, according to official estimates.
Due to such distress, many people have lost their homes, their identity, their savings and many others are under the threat of becoming homeless. Many families are having trouble making ends meet and trying to provide for themselves and their loved ones. Families now have to borrow money from friends to purchase food items while schools are closed. Children are also learning remotely when schools are closed.
Education is a fundamental right and is essential to help improve economic stability and development of every nation. In this current period, many education centers are closing all classrooms. Parents are struggling financially and must worry about giving their kids an education. Furthermore, governments are not providing support for schools and schools are closed to reduce the burden of government bills.
Due to school closures, students are losing their education and that is pushing academic performance down. Also teachers are suffering along with students and they can’t afford to hire fulltime staff. Due to constant disruption in students, their mental health is falling apart along with productivity.
Teachers are crying over the inability to give their children an education, that has resulted in parents withdrawing their children out of school just because their kid isn’t getting enough education. Students are also missing their exams and if they don’t qualify they have to complete schoolwork entirely online.
Due to high cost of textbooks, teachers are unable to pay their salaries as well as teacher fees have increased. Because of lack of books and supplies, both students and teachers are being deprived of knowledge. Since many colleges are shutting down their campuses and offering online classes to students, a lot of college students are not able to enroll themselves for courses they are studying.
Due to these situations, so many young students have migrated to cities who were previously their home villages, and are now living away from their roots, to study and gain a degree in computer engineering and software.
Many students even want to pursue digital arts as they have no access to computers and laptops. Young entrepreneurs are creating ecommerce sites and developing apps. Entrepreneurship has also improved by leaps and bounds. Due to the sudden rise of technology, so many young boys have gone into entrepreneurship and have successfully built successful ventures, thus creating a dynamic environment.
This generation has also adopted modern gadgets and electronics and is now the first generation to have smartphones which is very necessary for communicating. Technology has also widened the scope and influence of traditional trade. Due to this factor, trading has become convenient. Trading is a highly competitive medium and requires lots of planning and coordination and is not possible without electronic tools.
Similarly, investors prefer to invest in startups rather than established businesses as they don’t have the resources required for the process, their main focus is growth. When tech industries boom so will entrepreneurs want to build it out and develop the industry. This kind of development will lead to greater innovation in the technology industry which will consequently create better jobs.
Due to this economic downturn being faced by the people, many people are moving cities where ever they see a job offer, and this has resulted in a significant drop of unemployment. Countries are facing massive unemployment issues due to covid-19 on economy.
