Question

How do you expect COVID-19 to affect Economic Growth: for Canada and for the World in general?

Answer 1

Covid-19 has negatively affected the economic growth.lockdown period has proved to worsen the condition of economy.due to lockdown many business are headed towards to shut down process in Canada and for all over the world.the adverse impact on the economic growth can be stated as follow-

1. RECESSION- The economy would be facing recession in the economy because in the panic situation due to the crisis situation faced earlier the people would now save a larger portion of their income and won't spend rather then consumption they would keep it with themselves as a result their would be a lack of flow of cash and investment and therefore economy would lead to vicious circle of poverty.
2. UNEMPLOYMENT-when there would be lack of demand producers would not continue the production process and as a result the unemployment in the economy would increase.
3. FISCAL DEFICIT-government would have to make several efforts,development program and has to spend huge amount on economic stability in the economy as a result there would be a fiscal deficit in the economy.
4. DEPRESSION-after the recession the bottom of market graph would be formed and this is known as depression.this is the devastating situation in the economy.
5. INCREASED NPA-banks and financial institutions would be suffering from the problem of NPA(non performing assets) and bad debts and this would leads to serious financial crisis in the economy.
6. LESS INVESTMENT-new businesses would not start and existing businesses would be declining there business share in the economy.there would be lack of fresh investment in the economy.
7. FLUCTUATION AND SPECULATION IN ECONOMIC ACTIVITIES-there would be lack of stability in the economy and economy would face high level of fluctuation in the financial activities and stock exchange and financial markets

the above are the possible economic situation arising due to COVID-19