Contagion- The Socio- Economic Downfall | Adamas University

Covid-19, Economy

Contagion- The Socio- Economic Downfall

Covid -19: The Deadly Virus

Coronavirus disease that came in light in 2019 is elucidated as a disease caused by the attack of a novel coronavirus now recognized as COVID-19 or Acute Respiratory illness. This was identified the Wuhan City in China as an epidemic of respiratory Disease. WHO got informed about the same for the first time on December 31, 2019 followed by a declaration as Global Health Emergency On January 30, 2020, and On March 11, 2020, this got declared as a Global Pandemic by The WHO.

Covid -19: A Humanitarian disaster

The world is facing Health Crisis that is taking lives and putting human beings through sufferings like never. However, this is way more than a crisis that puts the human health at stake. All segments of population are getting attacked by  this virus, especially aged individuals, people with Special abilities or on low immune are getting majorly affected by this virus known as COVID 19.

The predominant symptoms for people infected by the virus are mild to moderate respiratory trouble, cough and fever. People above the age group of 60 are most exposed and vulnerable at this situation and especially people with Heart disease, Diabetes, Enduring Respiratory difficulties, Carcinoma Patients are quite prone to get affected.

This virus can be transferred from one infected to many through small droplets comes out of nose or mouth, which happens when an infected individual cough, sneezes or speaks. These droplets cannot travel far and quickly as they are relatively heavy in nature. People can catch the virus only if they are in close contact (which is less than in 1 meter or 3 feet) with the infected and through breathing this can be transmitted. Hence, this is important to maintain at least a 3feet distance if you are getting in contact with people. People can get infected even by touching objects or surfaces where any COVID 19 infected person might came in contact. This is possible when the infected droplets lands on those objects and surfaces around the person. Hence this is imperative to clean hands frequently using soaps, water and alcohol based hand rub.

Covid 19: The Socio-Economic Crisis

This COVID-19 situation is not only a health crisis, also profoundly impacting the world’s socio-economic conditions. This pandemic is attacking the societies at their core where over 1.7 million confirmed cases and 85,000+ deaths has been reported so far across the globe. Forced lockdown situation where social distancing, self-isolation, and travel limitations has significantly controlled the situation. However, this entire situation has resulted as a reduction in labor force across all sectors and numerous people have lost their jobs. The need for commodities and manufactured products has expressively gone down and factories across country is been shut to control the situation. Schools, colleges have been closed at the same time which is hinting towards economic Crisis and recession. The situation is expecting a decrease in Global economic growth as consumers are not able to purchase the goods and services available in the global economy and the failing demand for oil & new cars for commutes are causing the damage in economy as well.

Given the situation, Private companies have started laying off employees to make up for lost revenue this will create a downfall in economic spiral when the unemployed workers will no longer be able to afford to purchase unaffected goods and services. Hence, this will cause significant loss in sales and many shops will get shut which in return will impact the retail segment.

Rapid Decrease of Share price index:

In March 2020 the share prices have dropped across the board due to the pandemic. Brazilian share prices were the highest performing of all emerging and developed economies with an index value of 163.8. Contrarywise chine was the lowest performing with an index value of 77.2 currently.

Electronics:

China happened to be the leader in Electronic good supply across.  Hence an interruption will impact the overall Electronics goods production.

Insurance:

Insurance companies who provide health coverage will get impacted notably due to the COVID-19 outbreak.

Construction:

The logistic network of Resources like solar panels, Electronic goods and plumbing equipment, concrete boards and flooring tiles are expected to experience a major disruption across the country. As a result, the construction Industry is stimulating for slackening the Economic growth.

Tourism:

This industry got a hit at the first place when Social  distancing came as the only way to control the situation, which was followed by the lockdown scenario and this industry will not come in full action until the virus gets surfaced completely.

Airlines & Shipping:

The Travel business has fallen for the very first time in over last10 years. This includes Airlines and shipping Market which has got a major hit by the outbreak situation.

Automobiles:

Due to the shortfall in Chinese component supply, automakers across Asia has closed the factories and European Automakers are planning to shut their plants if there is no improvement in the situation.

Event Management:

This segment generates business where a large group of people comes together. As a ground rule to surface this virus the country can’t think of any gathering for a long time from now. Hence the industry got hit by a dead storm which will take a significant time to evolve.

Restaurant and Entertainment:

The Food Industry, Restaurants are largely impacted as there is hardly any transaction happening and the suppliers are expecting the prices of Raw materials to fly high substantially.

The venues which used to have mass gatherings like- Movie theaters, Museum, Concerts are completely at shut situation for social isolation cause where even Olympics have been even cancelled.

Conclusion

This is very difficult to gauge the damage or impact of this outbreak situation on the world Economy but there is no deny in the fact that this will be unescapable and substantial. If the situation doesn’t improve and persist, it’s better to say that the worst is yet to happen. Across the world this impact has been closely monitored by the Investors. Even if the situation improves the impact is likely to last for long. Some businesses with weak balance sheets are likely to move out of business as well very quickly.

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