Question

1-How bad the coronavirus pandemic will affect the economy and the unemployment rate. also, how long do you expect the economic impact to last? and are we on the verge of another recession?

Note the answer at least should be three paragraphs

Answer 1

Effect of coronavirus on:

Global level: As this virus is spreading very fast and there is no vaccines available for it till now, we are heading towards economic recession. We somewhere knew that economic recession will set up in sometime but no one knew this would be the reason. China being a major exporter of various products has shut there exports or we can say that no country is willing to import from China. Singapore and Spain are also widely affected. Economic growth of these country will take a pause or show a decline for next 2-3 quarters. Exports and Imports between nations are temporarily shut, if this persist for say 2-3 months more, there would be starvation across food importing countries. Stock market is constantly falling, contractors and temporary workers are laid off from organizations which would take unemployment level at its peak level.

National Level: Many countries have lockdown their states while serving only necessary items. It will reduce the circulation of money in the economy inspite people have started squeezing money with them in case this virus stretch for a little longer. This contraction of money supply will take economy to one step back. Most of the people who have invested money recently by borrowing will bankrupt.

Personal Level: People are afraid to go out for their grocery store, office, workplace and taking every precautions possible. The widespread tensions among people raises concerns which is also leading to spreading fake news which is not relevant to virus.

If situations remain same for some time, there will be drastic reduction in supply of goods which will raise prices of goods in the market as demand will remains the same. If government have positive current account balance with them, they might provide food subsidies in case of price rise but majority of the government does not have enough funds to feed their population. Situations might even worse if we are not able to find any vaccines for this. No one really know when will this end and how, but yes we can just pray to God to keep everyone healthy. If we are able to survive during this period, we will work hard again to take the economy up.

It is hard to measure the exact time period of its impact while we can say that economic heat of coronavirus will be there for several years while developed economies might cover from it soon but poor nations will take many years to cover the loss.