The COVID19 pandemic has caused the worst recession since the great depression of the 1930s. Additionally, this season has also recorded the highest unemployment rate globally throughout history. Finding jobs has also become more difficult during the ongoing pandemic. Shops and stores have been shut down, public gatherings burned, travel restrictions and physical distancing imposed to slow down the spread of the virus.
In Africa, a continent whose main source of income is tourism, the exportation of natural resources and horticultural products, there has been a go-slow as people keep indoors and manufacturers shut down to eradicate the virus by minimizing human contact and infection. On the other hand, in China, the world’s leading manufacturers and the first country to report cases of COVID 19, manufacturers have completely shut down and businesses slowed down affecting the retail market all-round the globe. Modern industries rely on goods and materials crossing borders. While some businesses have been able to restructure and allow their employees to work from home, others, like spas, hair salons, beauty shops, movie theaters, and game reserves have suffered great losses as it is impossible to work remotely.
Governments have never imposed the kind of lockdown that they have on the global economy. Depending on how long the pandemic lasts, these unexpected changes in income-generating activities may have a permanent consequence on the economy. Just recently, Macky Sall, the president of Senegal called for a cancellation of Africa’s debt through his twitter account. He explained that is the only way Africa will have any chance at salvaging itself economically during these difficult times.
Banks are also encouraged to offer lenders and businesses a lower repayment interest rate so that everyone can play a role in fueling the revival of the falling economy. These are just some of the discussions that economists and stakeholders are having to find ways to save the world from recession.
A recession occurs when there is a negative disruption on the balance between supply and demand. According to experts, the economy may suffer any of the three kinds of recessions depending on how and when the coronavirus is curbed. Those are mainly, the V recession, for example, is a quick and fast depression in the economy that also quickly recovers and returns to normal. The U recession on the other hand is a depression that stays down for a while but is still able to return to normal. Then, the L recession; however, is a drawn-out depression of the economy with no recovery signs in sight.
While researchers and pharmacists are working day and night to find the cure or vaccine of the virus, it is projected that trials will go well into the year 2021. This means that it will take more time to find the cure or vaccine and spread it all around the world to reach everyone who is affected. These facts will also play a key role as to how deep the economy will plunge and how easy or difficult it will become to return to normal.
Many countries already understand the effects of COVID19 pandemic and have already started coming up with clever ways to sustain the economy the best way they can. One of these ways includes creating a safer and conducive working environment that will allow manufacturers to slowly get back to work.
The elderly and people with underlying diseases are kept away from the larger population to control the mortality rate which has also skyrocketed due to the pandemic. This allows the rest of the people, who can be asymptomatic to continue working under safe guidelines and instructions to save the economy. These guidelines include consistent fumigation of public and working areas, wearing face masks at all times, and maintaining at list two meters safe distance from human contact. Even with these guidelines in place, the rate at which the economy will recover still lies in how fast a cure is found and life as we know it returns to what will be the new normal.