Question

Are we heading for a recession? Explain the conditions under which the global economy can be classified as being in a recession as COVID-19 persists. Explain linking the pandemic to the various stages of a recession

Answer 1

As we know that Coronavirus has originated from the we markets of Wuhan, city China in december 2019. From there it spread to other countries of the world. China was once on the top of with most number of deaths and positive cases, but China has lit bit control over this Virus nowadays. If we look into the present situation that is 15 June 2020, US is on the top of list with most number of positive cases and most number of deaths. The coronavirus has its presence in 188 countries and territories of the world. The COVID-19 is associated with SARS-CoV-2 virus. The WHO has declared COVID-19 as panemic on 11 March 2020.

The coronavirus has impacted each and every country of the world. The COVID-19 has its impact on international trade, education, transport, health as well. The countries are following the social distancing norm, so that spread of virus is controlled. The countries are on complete lockdown in order to prevent the community spread of COVID-19. Millions of people are out of work, financial markets have been rocked, and supply chains have faced major disruption as factories around the world have closed.The world is braced for recession even after governments and central banks have pumped trillions of dollars into their economies and slashed interest rates.

The coronavirus has lead to unemployment and inflation in most of the countries of the world. The large number of people are loosing their jobs as well. The prices of the goods are contineously incraesing, which is adding feul to the ongoing COVID-19 crises. The poor segment of the population is severly impacted. The business operations are shut and the output growth is also declining. The demand is on increase and the supply is on decrease. The world is heading towards recession. Most of the developed world saw negative growth - or falling GDP - for January to March 2020, as the economic impact of coronavirus began to hit. The worlds hard hit countries are USA, Italy, Germany, India, Pakistan, UK etc. The people are facing many hardships. The govt. in all these countries is doing its best to reach the hard hit segement of the population. In many countries the govt. is directly transfering money to the bank accounts of the poor people like in india.

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