Question

Mr. Mohammed Al Shahri has been assigned by his manager to write and discuss how can COVID -19 affect economy regarding two issues, Production and inflation.

Answer 1

COVID -19

after this pandemic , there will lot of effect on the economy.

Due to social distancing being the only solution to prevent spread of disease there is lockdown or closure of many production activities and many activities , only the one which adds to neccessities are running on regular basis

which further add that it mainly hits GDP , production and inflation.

With the current scenario there is situation of recession as there is no supply of product instead of demand or not and also there is blockage of supply chain and cash flow management which adds to recesion .

it can be said easily that we are in situation of recession but the governments have started pushing money into the market throgh relief packages to economy and also by printing more notes which later might end up in inflation as money do not disappear if it is added in the supply it will be there in the market

and also production sector is hit very hard in both way,

if we say the production of goods which are nnot necessity faces major blockage where as basic input like food and medicines are used more than the klimit therefore that section is hit by excess demand for example, demand of mask and sanitizer.

so overall all are affecting in one or the other and playing important role.

balanced production and self sustainable of economy is need to the current scenario.

and inflation or recesssionn both needs to be checked to cover up the loss and to safeguard the country to go ages back.