COVID-19 Pandemic and the Asia-Pacific Region: Lowest Growth Since the 1960s
The coronavirus pandemic is the biggest threat posed to humankind. This infectious disease is taking a toll on lives and the economy at the same time. This virus came into existence in Asia last year and knocked on other continents gradually. COVID-19 cases are soaring high with every passing.
Nations are choosing total shut down to minimize the effect of the virus as the need of the hour. As people are getting infected by this virus, the economy is also shutting down. It has been estimated that this pandemic will surely leave a long-lasting impact on the people and economy.
Survival is the most important factor that is under danger in this pandemic time. People are forced to stay indoors and there is only demand for essentials worldwide. The economy is crashing and it is estimated that more than 25 million people will be sacked and left unemployed.
Effect of the total shutdown on economy
As the economy of every country is falling, people are more concerned about their livelihood than COVID-19. It is being said that people will die out of hunger more than coronavirus in many provinces in Asia. The lockdown introduced a complete hiatus to the world economy resulting in depreciation.
Most nations in the Asia Pacific are highly-populated and are witnessing the havoc in several ways. The developing countries are facing a severe problem because of the depreciation rate soaring high.
This crisis is witnessed on the global level and every nation is affected severely. Per capita income is also expected to experience steep fall by 8%-9.5%.
Unemployment is making this pandemic more devastating. People are losing jobs every day. Few economists asserted that this pandemic is not only a health crisis but also a death strike on the economy. Post World War 2, this the first such crisis that will lead the world economy to the dark phase. Economies are dying and this is the major reason for unemployment.
The money crunch is real. People are not spending on anything other than essentials. The service industry is going into a great loss that can't be stabilized any sooner. For many countries, tourism is the only source to boost its economy and this pandemic has hit dart at that point.
In a recent research, around 1.6 billion people globally are either unemployed or are on hold. This situation is alarming because half the world's manpower is on stake and there is nothing much to do.
Implementation of Policies
Every nation is dealing with this crisis on their own terms. The health sector is on top priority. Nations dealing with poverty are looking out to people who are deprived and need help for survival. Many countries are making plans to boost their economy through businesses.
The government is investing in health sectors as well as small businesses that will help the rise of per capita income.
The central banks are collaborating with the government to help the small enterprises and normal household to stay afoot. This will help in the healing process of the economy.
This pandemic is one of the worst faceoffs until now!