Question

Considering the extreme stresses on the global economies and financial systems due to the COVID-19 pandemic (e.g. high losses, high debt loads - for consumers, businesses and governments), what roles do you think that capital availability, interest rates, and investment risks will play in the global recovery from the COVID-19 pandemic?

Answer 1

The COVID-19 pandemic has spread with disturbing rate, tainting millions and carrying financial action to a close stop as nations forced tight limitations on development to end the spread of the infection. As the wellbeing and human cost develops, the monetary harm is as of now obvious and speaks to the biggest financial stun the world has encountered in decades. The effect of the pandemic and the drawn out harm it has managed to possibilities for development the most profound worldwide downturn in decades, in spite of the remarkable endeavours of governments to counter the downturn with financial and fiscal arrangement support. Over the more drawn out skyline, the profound downturns activated by the pandemic are relied upon to leave enduring scars through lower venture, a disintegration of human capital through lost work and tutoring, and fracture of worldwide exchange and gracefully linkages.

The pandemic has crashed the market as all the factories are on a stand still leaving them with huge debts. Recession is on a rise and daily many individuals around the globe are losing their jobs leaving them with no option to sustain themselves. As strategists comment that this recession will be worse in the coming times where there will be no production of goods and no individual will be able to fulfil their basic necessities.

The share market prices have crashed and the shares of multinational are going down daily. Currently it won’t be advisable to invest in shares as the market is on a crash and nobody knows when it will stable. With limited resources individuals are not suggested to take any risk in such markets where they will face losses. Banks have lowered down interest rates which are also reason to worry. Governments around the globe are working throughout to sustain their economy by providing concessions on loans and other related financial matters. Revival of the economy is totally dependent on the vaccine, because virus is spreading daily and government officals are working throughout to get the vaccine ready and people around the globe can be free from the pandemic.