Esguerra, Nathaniel B.

6-12-2020
SEM-2 SS12 Paper 1

The economy during the pandemic has gone a big impact in all sectors. This pandemic is
different compared to the past outbreaks. In economic basis, the direct supply will lessen the production
since the outbreak started at the East Asia spreading fast to the biggest industrial sectors like US and
Germany. Manufacturing sectors of other countries are less affected since they are having difficulties
the necessary industrial inputs from the big nations. The demand will also be affected due to its
macroeconomic drop of supplies and consumer delays.

We are experiencing many changes during the pandemic like less production of supplies because of
store closures, other sectors like schools, office companies, and factories are on a closure too, and
people forced to stay home for safety health measures because of COVID-19. This current situation
means that no working means no production and consumption. In a macro-micro economic basis, the
economy production level of the whole world gradually decreases, and its duration is unknown. For
example, two long periods of firm confinement inferring a dividing of monetary action. This prompts one
twelfth of no wealth creation like eight percent loss of an individual’s salary. Just adding only, the
progressive come back before the end of the year, a loss of ten percent of Gross Domestic Product
(GDP) will be conducted because its containment policies implemented. The ten percent of Gross
Domestic Product is not necessary unless it is shared equally to the whole world to prevent scarcity of
supplies especially during this time of the pandemic. As of now, the government strategizes on how the
economy production curve will keep at its normal phase. The economy production slightly rises as some
sectors are going back to its normal operation little by little.

The COVID 19 pandemic gives us new challenges in life although it is for our safety to prevent the virus.
The health workers risking their lives to cure the infected patients and to control the outbreak by
flattening the curve of the COVID 19 pandemic. The economy on the other hand, has an important role
too were it gives goods and services for us consumers what we want during this crisis we are facing.
Production and consumption are slowly rising because of their strategic plan by opening their
establishment sectors by a minimum capacity to maintain its demand and supply curve. Thus, not only
the health workers are only risking their lives, all people are making their role to provide any goods and
services during this pandemic.