Thursday, April 30, 2020

HOW CORONAVIRUS AFFECTS THE WORLD ECON0MY?


                   

 HOW CORONAVIRUS AFFECTS THE WORLD ECON0MY?

The graph plotted between birth and death always follows linear regression in increasing altitude. But from 4 months (December 2019-march 2020), a contagious disease, well known pandemic is eating the world’s population day by day. The mortality rate is rising each and every second. This virus is caused by Severe Acute Respiratory Syndrome (SARS). Firstly, this virus is observed in southern China. So far, less than 0.0008 percent of the humans on Earth have been diagnosed with this. Meanwhile, the second most affected area due to this virus is world’s economy.
INDUSTRY:
China’s was called as “the factory of the world”. But now, it fell 13.5%. On 23rd March, Apple is no longer a trillion dollar company. The world’s 500 richest people have lost nearly $1.3T since beginning of the year. Limitations and restrictions have affected the supply chains of big companies such as industrial equipment manufacturer JCB and car maker Nissan. In many countries to boost up their economy, central banks have cut interest rates. But these actions of government may not have a positive response in this sector. Around 40 lakh crore rupees wiped out from Indian stock market.
Travel and Tourism:
In India, Tickets prices of railways increased by 30%. All the passengers and metro services are blocked. Moreover, all the citizens cancelled their trips and holidays under the name of social distancing. Not a single person is interested in traveling for a visit to another country. Airlines cut all their flights to restrict passengers from other countries. Fear of virus and people staying at home, have a devastating impact on hotels and restaurants. The workers who work in these sectors lost their income and were suffering from huge-loss. The paid-leave for some employees is somewhat recovering the loss.
Employment:
The estimation speaks 4 million jobs have been lost in 2019. The 24/7 working software companies have shut down and send their employees work-from-home which is not yielding good results. As the face-to-face communication had a breakdown, the projects output are not in excepted way. But in a positive note, many MNC’s are hiring employees in a large number. The recruitment is made online. For example, Amazon is hiring 1,00,000 workers. This is a very good chance for job aspirers. On a negative face, the departmental stores, malls, wholesale shops lost their income, the retail workers lost their jobs.
Entertainment:
All the movies shooting are delayed. Celebrities are enjoying their quarantine life. Theatres are shut. Not even one movie is released in recent times. IPL (Indian Premier League), the most enjoyed period of all Indians is no more in 2020. Tokyo 2020 is the major sport event to be held, which is in dilemma about corona threat. Sports events to be held in many countries are cancelled. The OTT platforms are requested to migrate their services from HD to SD. Recently; Netflix announced their cancellation of HD subscription. The video streaming services are aligning their infrastructure with phone network. The digital traffic is increasing in these entertainment providers.
COMMON MAN:
A businessman income may reduce because of these consequences. But, a common man where his entire family livelihood is based on his income is the most suffered person. No job, no money. How can he lead his family? The government should focus on a common man basic needs and act according to it.



  

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