Question

Explain how Covid-19 has influenced the stock market and economy? (essay question)

Answer 1

Covid-19 has a major impact on the stock market and the economy. After the outbreak of Covid-19 in Wuhan, China there has been massive deaths and nationwide lock down. As China, is the epicentre of all the production activities across the world, lock down in China had brought about a major fall in the stock markets all across the globe and a looming recession in the world wide economy. Slowly, the virus started to spread and engulfed Italy, USA , Russia , Switzerland and India as well. Almost, all these countries are under lock down. The loss of production activities during the 40 days lock down period has bought the industries in a verge of closing down and employees are getting fired as well as suffering pay-cuts. Due to all this , the economy is falling continuously , the GDP growth rate has fallen to a decade low , oil prices have also fallen due to the slowing economy as the demand is very sluggish for oil. So, as of now we do not see any improvement in the economy for the next 6 months. Once life resumes to normal we can see improvements as well as recovery in the markets.