Question

Identify and discuss one of the current economic challenges in the market and the potential impact on households and businesses.

Answer 1

Answer:

Covid-19 (epidemic disease) is many times greater than any Health as well as Economic crisis across the country (or across the continent): it is affecting societies and economies (Epidemic) has spread all over the country. Assessing the impact of the Covid-1 crisis on society, the economy and vulnerable groups It is fundamental to inform and adapt the response of governments and partners to recover from this crisis and ensure that no one is left behind in this endeavor. Assessing the impact of the Covid-1 crisis on society, the economy and vulnerable groups It is fundamental to inform and adapt the response of governments and partners to recover from this crisis and ensure that no one is left behind in this endeavor.

Socioeconomic impacts of COVID-19 on Households and businesses

Poverty

Increase 40-60 million people Will be pushed into Extreme poverty due to Economic shocks from COVID-19

Decline in global trade

World trade values ​​fell 3% in the first quarter Of 2020 Approx Quarter There is a 27% decrease Expected in Second quarter

Fallen commodity prices

Commodity prices at record fall of 20% March, standing Oil prices fall Oil prices are stable Subtract here Almost 40% less Than the beginning Stress

Increase in food intake Security

Covid-1 will double The number of people Food crisis About 265 million people Low and middle income High-risk countries Food insecurity by End of 2020 without Swift Action is taken Most people suffer In acute food insecurity 2019 was in the countries Conflict affected (77 million), weather Changes (34 million) And financial crises (24 million people)

COVID-19 effect on women

On average, women make up Healthcare up to 70% Labor and social care Area 104 countries Women already do three The more times you don't pay, the more times Careful work as a man. Covid-1, bill maintenance The work has increased, Out-of-school children, needs to raise care Older people and burdened health Service In developing countries, The majority of women There is employment Informal Economy - About 70% Covid-19. Causes isolation. A spike in the house Level of violence

Terrible fall in Tourism

Considered tourism the most difficult one Covid-1 by Eruption Potential loss of 850 Million to 1.1. Billion International tourists’ Possible loss of 10 910 Billion to 2 1.2 trillion Export revenue from Tourism Approximately 100 and 120 million jobs in danger

Slum doublers

More than 90% of COVID-19 Cases are happening In urban areas. More than a billion people live Informal settlements And like a slum Terms, Covid-1. Is increasing in intensity Or insecurity Population group

Deficiency Social Protection

55% of the planet Population (so many) As four billion people) Not covered welfare or national assistance Globally, only 20% Of the unemployed People are covered Unemployment Benefits and in some Area coverage deficient

Student Out of school

About 1.2 billion Learners (or 68. %) Total students, Registered) are affected By closing the school There are still 144 countries Is nationwide Closed in place

Income and Jobless workers

About 1.6 billion Informal workers 60% of them lost Small amount of income Any savings and No social access Protection

Remittance flows reduction

Send money to There are LIC and LMIC Expected to fall through About 20% cut Significant lifeline of Many insecure Domestic

Major impacts of COVID-19 on businesses and productions

Direct effect on production

The shutdown in Hubei province and other areas has already had a major impact on Chinese production. Similar measures taken by their respective authorities have had a direct impact on some other countries as well. The recession in China affects Chinese exporters. According to the World Bank, China, Korea, Japan and other Asian countries are the largest sources of imports. Thus, without a new outbreak of the disease, the region is expected to grow slowly in the latter part of 2020.

Supply chain and market disruption

Many manufacturing companies rely on intermediate inputs imported from China and other countries that suffer from this disease. Many companies rely on sales in China to achieve economic goals. The slowdown in economic activity in affected countries and restrictions on transportation - this will affect the production and profits of certain global companies, especially production and of raw materials used in production. For companies that rely on medium-sized goods in the affected regions and are not able to easily switch sourcing, the size of the impact may depend on how quickly it grows. Small and medium-sized companies may find it more difficult to avoid disruption. Businesses involved in travel and tourism are facing losses that may not be recovered.

Financial impact on companies and financial markets

Temporary interruptions to input and / or output can put a strain on some companies, especially those with insufficient liquidity. Traders in the financial markets cannot accurately predict or understand which firms may be vulnerable. Increased risk indicates that one or more key financial market players have taken on unqualified investment positions in the current situation, and confidence in financial instruments and markets has become even weaker. The potential (possibly low probability) phenomenon would be a significant barrier to financial markets as participants expressed concern about the risk of participating. The uncertainty created by the epidemic has made it somewhat more likely that investors in the equity market and corporate bond markets will prefer to hold government securities.