Ever since the first cases of Coronavirus (COVID-19) was reported, the biggest anxiety has been a means to curb this deadly new disease. Today, this pandemic has become one of the worst global crisis of our time. Economic experts from around the world believe that the current Coronavirus pandemic will have extremely grave repercussions for years to come. Many have already dubbed the current global crisis as one of the worst that the world has seen in recent times. Economically speaking, the current situation draws parallels with the 2008 Stock Market Crash in terms of the economic crisis that has taken place as a result of complete lockdown in many parts of the world. With trade and commerce affected, the stock markets crashing and even agriculture and IT sector being affected, the situation has become quite critical. International relations as well as education has also been widely affected by the crisis. When the pandemic began affecting countries other than China, the immediate response was to ban passengers from other countries and to send away people from these countries back home irrespective of the consequences. Such a situation did lead to a widespread mistrust between nations, but the situation has become such that allowing international travel is no longer advisable.
A global crisis that does not seem to end
The Coronavirus pandemic (COVID-19) has become a primary news focus for more than three months now, as more than three-fourth of the globe has been affected by the Coronavirus Pandemic. It has affected all walks of life. Here are some of the impacts of the global crisis:
- Impact on Educational sector: The Coronavirus Pandemic has affected educational systems across the globe, leading to the closure of all schools and universities, thereby affecting the education of the students. As of April, more than 1.76 billion students from around the world have been affected the pandemic. A survey by UNESCO has stated that more than 188 nations have implemented a nationwide closure and 5 have implemented local closure, resulting in a global crisis for the student population. Cambridge International Examinations had announced that all examinations that are conducted by it or associated with it would be canceled. Closure of schools impact not just schools, students, teachers and families but have far reaching social and economic consequences. In response to school closures, UNESCO had suggested the use of distance learning programs and open educational application platforms to limit the disruption of education
- Impact on supply: As a result of imminent lockdown and quarantine announcements by governments, people have been panic buying, cleaning out food supplies in local supermarkets and grocery stores. In normal cases, it wouldn’t be an issue as it could be replaced with fresh stock. But currently, with half the world closing of boundaries and transportation at a standstill, supply of food is expected to be affected. The lockdown could also have an adverse effect on medical supplies as lack of transport facilities could affect the supply of medicines and medical facilities to health centers. Essential supplies such as bottled water, toilet paper, food grains and canned foods all have seen a shortage in a number of areas.
- Impact on the Economy: With China being a major trade partner for more than half the world, the pandemic has had a severe effect on trade, not just with China. With more countries closing off air travel and borders sealed shut, trade is currently at a standstill. Local shops have remained shut, malls and other major business centres, including the IT sector have been severely affected with more countries declaring a lockdown and requesting its citizens to work from home. With business at a standstill, stock markets and banks being affected, businesses and organizations find it impossible to pay their employees their salaries, resulting in further economic crisis.
A Global Crisis with no end on the horizon
As mentioned earlier, the Coronavirus Pandemic has become a global crisis that has caused economic experts from around the world to become very worried. With the world on a standstill, no trade and commercial activity happening, most nations have seen a significant slump in their GDP (Gross Domestic Product). The GDP is an important factor in deciding growth of a country and it goes without being said that such a slump in the economy is a definite cause for worry for the world. One wonders if an end is in sight for this global crisis.