Question

why did the good producing sector saw minimal impact in employment and economic activity during the pandemic? why did it remain relatively stable?

Answer 1

The goods manufacturing sector in the economy includes agriculture, forestry, fishing etc. When a pandemic occurs, it hits the economy very badly. Quarantining millions of people around the world, imposing travel restrictions, schools and airports being closed, supply chains being disrupted or shut down etc are some of the changes that happens in the society. The banking, financial services and insurances are forced to cut their forecasts for the global economy. The energy and resources, especially the oil supply chain has been slowed. Healthcare and life sciences shows a mixed type of response. Media, entertainment, high tech and telecommunications, manufacturing sectors s etc. are hardly hit.

Thus, people are forced to shut themselves inside their houses so as to protect themselves. But still, the demand for fast moving consumer goods never slows down as people need food, pharmaceuticals and other basic necessities to survive. Maybe their requirement will be decreased but their production can never be put to a halt, like that for electronics industries or so. The essential commodities must be made available to the common people and the government takes initiative in ensuring the same. Thus, good producing sector saw a minimal impact in employment and economic activity and remained relatively stable during the pandemic..