Since the outbreak of the coronavirus, millions of people are still suffering from contagious diseases. Countries have been struggling with economic fallouts. Old people are at higher risk because of the higher mortality rate.
Those in their mid-’20s and ’30s are at a greater disadvantage in terms of wealth accumulation and health. A survey conducted by NBC News just after the outbreak of corona the virus in the US showed that younger’s age 18 to 25 will be suffering; having the most volatile market on one hand and getting pay cuts and losing health insurance on the other side due to crisis.
Businesses in many countries have become highly indebted, especially in developing countries. While low-income households are particularly receiving adverse impacts. The efforts that have been made to reduce poverty for decades significantly spoiled. Countries will have to come up with extensive plans for that marginalized section of society hit harder by the coronavirus.
International Monetary Fund has put the growth rate at the bottom for 2020 and 2021. Because of the high intensification of Covid-19 in the greater part of the world.
World Economic Outlook (WEO) projects 4.9% global growth which is 1.9% below April 2020. According to IMF’s recent report Covid-19 negatively impacted the businesses in the first half of 2020. Contrary to anticipations and recovery to reminiscent events will gradually occur. It anticipates a 5.4% global rate for 2021.
Having said this, countries are emerging out of the crisis. Relatively in a moderate way in response to the policy changes to the level of monetary interventions. In the meantime, Interest rates kept near zero with further promises to deal with the money supply growth.
Having heard the news that the US and China met to discuss the trade and FED’s inflation, policy pledges to retain the low interest even longer than expectations. As the result, major markets in Europe begun to rise up. France gained 3.42% and Germany advanced with 5.13%. Britain keeps struggling with 0.70% higher this month. Similarly, other countries such as Japan, Australia, Honking, etc show the same pattern of growth this month.
Moreover, recent data points towards modest growth that will have to been seen in the third and fourth quarter of the year. Advanced economic activity has seen observed in the manufacturing sector with a reduction in jobless claims.
Efforts are being made to counter the adverse ramifications. These have been emerged out from the spread of coronavirus. But at the other end, the serious crisis takes to the surface long pent up problems.
There are many countries plunged into a beleaguered state having hit hard by the virus. They would not be able to provide social safety to the citizens and reduce unemployment. The reason behind the matter would succumb to the ballooning budget deficits.
Many efforts are required to improve the health sector. Especially, outdated health services inheriting the developing countries require intense efforts. The COVID-19 crisis although helped developed countries. Whereas they will come to realize how much they are prepared to contain even more serious crisis hereto after.