How are Economies Dealing with COVID-19?

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The day COVID- 19 hit our world, everything changed in entirety. Half the world is still in quarantine, and none can deny, even regular operations for small businesses have become quite impossible. Now that the world’s economies are under a recession, even stabled economies like China and Italy are facing the brunt of the virus. While some countries have gone on complete lockdown, the others are operating under strict safety measures. In case you want to know how the world’s economies are working, you may consider the details below.

Manufacturing at a Halt

Economies are going through a depression, and countries are putting their economic operations to a halt. From stopping manufacturing on small scales to cutting down industrial productions, 50% of countries have suffered substantial financial losses. To put things further into perspective, if we look closely enough, about 81% of the states have experienced a reduction in industrial production to six percent on an average.

Not only that but also Covid-19 has affected productions on large scales too. Small scale businesses are finding it hard to continue with their operations. Substantial safety measures have become the need of the hour, and to comply with these standards, companies are striving hard to stay in the picture while taking every measure they can to not fall victim to the virus.

Trade Losses

With half the world under lockdown and flights being at a halt, trades have stopped to quite an extent. Though things are changing now that coronavirus has become ‘the new normal,’ 43 out of 46 countries during March- April 2020 struggled with a lower level of trading goods. Countries like Italy, Mexico, India, France and South Africa because of high death-rate, suffered substantial losses in trading that is, sustained the highest reduction in trade. However, China, Chile and Israel overcame the virus and got the chance to resume with their regular trading shortly after a short period of staying under a lockdown.

Unemployment – A Challenge to Conquer

The health risks left people under extreme pressure. While work from home became the new in, most companies sent their employees home. With no work to offer these companies left people in dire need to find work that could have them enjoy the necessities of life, i.e., survive in such a tormenting period when living is in itself quite a struggle. Precisely, unemployment became the challenge for even the most developed economies of the world.

Bottom Line – Thriving Technological Departments

Technology has today taken the front seat. While coronavirus has left us all restrained and chained in our houses, economies and businesses that have adapted to the latest technological tools, are doing better than those that have not. These advancements have only helped our world in the thickest of times. Simply put, had it not been for these innovations, all the world’s economies might only have doomed.

 

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