Question

For the past two (2) weeks we have had to adjust our lives to address the Covid-19 virus. Businesses, schools, governments, and institutions have had to adjust their operating approaches. This is a change in the business environment we spoke of during our first weeks together. Unexpected, unanticipated and with significant impact on the economy. How are business and government leaders responding? What are the possible impacts on businesses, citizens and the economy as a result of their decisions? Now, I turn to you and ask for your impressions regarding the steps our local, national and international leaders have taken to address this very important issue.  

Answer 1

Covid-19 has had an impact on how individuals, businesses, schools, governments and institutions function. Many have anticipated that recession might seep into the world economy. A report by Mckinsey showed that the United States and the Eurozone could possibly take three years to recover from the impact of this crisis. ILO estimates state that because of Covid 19 25 million people might face unemployment. It can be seen that many businesses and governments are coming forward to ensure that the economy does not slip into recession. For instance, Google has come forward to contribute $800 million to support governments as well as small and medium sized business houses. Similarly many companies have pledged to contribute to help in fighting against this crisis.

Jerome Powell, chairman of Federal Reserve had said that like the US economy is already experiencing recession. But the priority should now be to first fight the crisis because once the crisis has been dealt with, it will be easy to revive the economies. I believe that the leaders are taking cautious steps to ensure that individuals do not panic. Also, by reducing interest rates and through other tools, they are ensuring that there is money in the economy and the nation is not pushed into recession.