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How COVID-19 Will Affect the Global Economy

Since the birth of mankind, the world has survived countless wars and pandemics. Otherwise, we wouldn’t be where we are today.

If you think about it, what our forefathers experienced before was way worse than now. There were no modern warfare and potent medicines back then. Millions of deaths either due to war or a health epidemic were very common.

Nowadays, we are fortunate to have the latest technology and medicines. Healthcare is more accessible than ever – at least in most cases.

However, there is no denying that COVID-19 has caught everyone by surprise. What seemed to be an obscure type of illness originated from China has already spread all over the world.

From one case in Wuhan, where the virus is said to have originated, it has already affected more than 1.3 million individuals so far. And it seems to be increasing day by day.

The impact of COVID-19 on our daily lives

How COVID-19 Will Affect the Global Economy

What seemed to be an ordinary day several weeks ago ended most of us stuck in our homes. On the other hand, a lot of hospitals all over the world slowly began to fill up to capacity.

In one case, so many patients got admitted and all needed medical care. So overwhelming, that a lot of hospitals suffered from a shortage of hospital beds and medical supplies. Medical workers have to make a heart-breaking decision on who will live and who won’t.

Schedules concerts and sports events got canceled or postponed to a later date. Even the prestigious marathons and the NBA games have no escape to this unseen enemy. Heck, even popular celebrities and athletes fell victim to COVID-19.

A lot of businesses either closed temporarily or for good, in the worst cases. Likewise, a lot of workers found themselves jobless for the time being. At the same time, our front liners have to compromise their own health and safety in the name of their sworn duty.

Meanwhile, all we have to do is to stay at home and keep ourselves healthy. No going out for leisure purposes except for grocery or pharmacy trips only. Social/physical distancing has to be observed at all times. We should take note of our personal hygiene and frequent hand washing as well.

School opening might have to be moved on a later date in case the pandemic does not slow down. More so, our economy will be greatly affected due to the virus. In fact, it has already affected a lot of economies all over the world.

The impact of COVID-19 on the global economy

Experts say that we will experience a severely negative impact on our economy due to COVID-19. Earlier predictions say that major economies will suffer at least 2.4 percent loss in their GDP this year. But since the virus has already spread all over the world, the total percentage loss may already be more than that.

The further extent of COVID-19’s damage will depend on how the virus will be contained. How the government responds will also dictate whether their containment efforts will be successful or not.

Even first-world economies such as the US and China suffered a devastating economic blow. In China, the services and manufacturing sector dipped to its lowest level last February. Exports dropped more than 17 percent while vehicle sales sank as much as 80 percent.

Experts also say that among those that will be most hardly-hit industries are travel and tourism. A report by the International Air Transport Association said that this year, it will cost air carriers as much as $113 billion in revenue. Likewise, hotel companies have already felt the impact of the virus on their revenue and sales.

The film industry will also suffer a devastating loss in revenue due to the ongoing pandemic. In fact, experts predict a $5 billion loss in the international film market. The events and restaurant industries suffered a similar fate as well. This pandemic also saw a huge blow to the stock market.

On the other hand, work at home/home-based jobs generally remains strong in this trying economic times. Supermarkets will remain open to cater to the consumers’ basic needs. The agriculture and medical sectors will be more important than ever in this ongoing situation.

What we can learn from COVID-19

Despite all of the chaos that is happening right now, there are so many things to learn with the ongoing pandemic.

For one, we should not take our personal hygiene for granted. Even hand washing should be the norm even without health emergencies like this.

Social distancing should not also mean the end of our relationship with our loved ones. There are a lot of ways to connect with friends and family without physical contact. Skype, Zoom, and other communication tools can help in boosting morale and offer support even from miles away.

This is also the time we realize how important our front liners. From supermarket cashiers, medical personnel, law enforcers, and others who chose to serve the people.

In times like this, no one is above the other. All of us are the victims here, whether you’re a popular celebrity or an ordinary citizen. We should do our part to flatten the curve and to defeat COVID-19 once and for all.

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