Report: Issues which are arise due to Covid-19

Coronavirus hits jobs, millions of people face

unemployment and poverty

Introduction
The aim of the study is to discuss about the economic issues which is raised due to covid-19.
Covid-19 is also called coronavirus. Coronavirus disease (COVID-19) is an infectious disease
caused by a newly discovered coronavirus. Most people infected with the COVID-19 virus will
experience mild to moderate respiratory illness and recover without requiring special treatment. 
Older people, and those with underlying medical problems like cardiovascular disease, diabetes,
chronic respiratory disease, and cancer are more likely to develop serious illness. Which was
firstly outbreak in Wuhan City, Hubei Province, China. Now corona virus spread in all over the
world, due to corona virus millions of peoples are death and millions of people are effected and it
also effect most of the economy of world. If we see the graphs which shows (Jan to May) how
many people died. The red line indicate increase in death rate.

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Coronavirus: The world economy at risk

The outbreak of pandemic Covid-19 all over the world has disturbed the political, social,
economic, religious and financial structures of the whole world. World’s topmost economies such
as the US, China, UK, Germany, France, Italy, Japan and many others are at the verge of
collapse. Besides, Stock Markets around the world have been pounded and oil prices have fallen
off a cliff. Due to decrease in oil prices it crash the world economy.

Many experts on economic and financial matters have warned about the worsening condition of
global economic and financial structure. Such as Kristalina Georgieva, Managing Director of
International Monitory Fund (IMF), explained that “a recession at least as bad as during the
Global Financial Crisis or worse”. Moreover, Covid-19 is harming the global economy because
the world has been experiencing the most difficult economic situation since World War-II. As
Covid-19 has already become a reason for closing the multiple businesses and closure of
supermarkets which seems empty nowadays. Therefore, many economists have fear and predicted
that the pandemic could lead to inflation. For instance, Bloomberg Economics warns that “full-
year GDP growth could fall to zero in a worst-case pandemic scenario ”

The Covid-19 economic crisis is hitting young people harder and faster than any other group.
Young people have to face many hard situations including disruption to education and training,
employment and income losses, and greater difficulties in finding a job. The ILO also uses the
term "lockdown generation" to describe young people facing multiple shocks from the COVID-
19 crisis, including increased vulnerability to anxiety or depression. More than one in six young
people have stopped working since the onset of the coronavirus pandemic while those who
remain employed have seen their working hours cut by 23 percent, according to the latest
International Labor Organization (ILO) data. Which is a very worst situation.

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Effects on Economy
The COVID-19 pandemic has spread with alarming speed, infecting millions and bringing
economic activity to a near-standstill as countries imposed tight restrictions on movement to halt
the spread of the virus. As the health and human toll grows, the economic damage is already
evident and represents the largest economic shock the world has experienced in decades

Growth prospects remain highly uncertain.

 Advanced economies are projected to shrink 7 percent. That weakness will spill over
to the outlook for emerging market and developing economies, who are forecast to
contract by 2.5 percent as they cope with their own domestic outbreaks of the virus.
This would represent the weakest showing by this group of economies in at least
sixty years.

 Every region is subject to substantial growth downgrades. East Asia and the Pacific
will grow by a scant 0.5%. South Asia will contract by 2.7%, Sub-Saharan Africa by
2.8%, Middle East and North Africa by 4.2%, Europe and Central Asia by 4.7%, and
Latin America by 7.2%.  These downturns are expected to reverse years of progress
toward development goals and tip tens of millions of people back into extreme
poverty.

There are various sectors and economies that seem most vulnerable because of this pandemic,
such as, both the demand and supply have been affected by the virus, as a result of depressed
activity Foreign Direct Investment flows could fall between 5 to 15 percent. Besides, the most
affected sectors have become vulnerable such as tourism and travel-related industries, hotels,
restaurants, sports events, consumer electronics, financial markets, transportation, and overload of
health systems. This video show how Covid-19 effect different industries.

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Coronavirus: The world economy at risk

Causes of economic recession

Unemployment

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Hundreds of millions of people worldwide have lost their jobs as a result of the coronavirus
pandemic Hundreds of millions of jobs have been put on hold by coronavirus shutdowns around
the world. That’s been especially true in countries already hit by the pandemic. But other
areas, like Pakistan and much of India, are suffering from the international economic fallout and
are likely to face heightened job losses if the pandemic strikes harder there. In the United States,
more than 30 million people, over 15% of the workforce, have applied for unemployment
benefits in recent weeks. In Western Europe, joblessness is also increasing. Only government
wage-support subsidies have staved off a U.S.-scale spike, by keeping idle or furloughed workers
notionally employed. In China, official statistics have reported only a slight uptick in
unemployment. But that figure excludes a migrant workforce of nearly 300 million of people.

If we talk about Pakistan a recent Gallup survey reported

estimated that up to 17.3 million people in the country could
lose their jobs due to the virus. According to the survey,
there are 61.7 million employed people in Pakistan and the
number of people at risk of unemployment due to
coronavirus is 28 percent of the total number. Hence, 17.3
million people may lose their jobs in Pakistan. The
continuing lockdowns and economic fallout of the Covid-19
pandemic could leave tens of millions of workers jobless in
coming months and have an outsized impact on the most
impoverished countries if immediate steps aren’t taken,
international organizations have warned

Poverty
COVID-19 is taking its toll on the world, causing deaths, illnesses and economic despair. But
how is the deadly virus impacting global poverty? Here we’ll argue that it is pushing about 40-60
million people into extreme poverty, with our best estimate being 49 million. World Economic
Forum predicted that global poverty would fall from 8.1% to 7.8%. Therefore, it is disappointing
to see that those who have previously been able to escape the ravages of poverty have now
escalated due to the onset of this epidemic. These numbers are of concern to marginal populations
who are more likely to die of starvation than those who are infected. The situation of scarcity and
vulnerability is worse in areas where the virus has the most damaging effect and the highest

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Coronavirus: The world economy at risk

proportion of the population living close to the international poverty line. The International
Monetary Fund (IMF) projects that economies shrink to six percent in developed countries, while
developing countries have a one percent deficit. Since the majority of the world’s population lives
near the poverty line in developing countries, they are more vulnerable to the virus, even in cases
where the virus is not as harmful to health as sub-Saharan Africa. In. Here, for the first time in 25
years, the World Bank Project, which is experiencing a recession, lost almost half of its work to
the entire continent. South Asia, on the other hand, is fiercely competitive, prioritizing the
declining economic performance of the last 40 years.

The families that are already dependent on casual, low paid, or unstable work, lose their jobs or
are forced to isolate because of the coronavirus outbreak, they have little to fall back on. They
have few savings, but often debts, and cannot afford to stockpile food and other necessities. A
break in income can have devastating consequences. For families in poverty, missing work
directly relates to missing meals, making it hard to comply with government and health advice.

Most of the people in the world live below the poverty line due to corona virus their situation is
further worst most of the people commit suicide due to poverty.

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Recommendation
The coronavirus (COVID-19) outbreak has already brought considerable human suffering and
major economic disruption. Human cost of the Coronavirus pandemic it is immeasurable
therefore all countries need to work together with cooperation and coordination to protect the
human beings as well as limit the economic damages.

Governments need to act swiftly and forcefully to overcome the coronavirus and its
economic impact
 Governments need to ensure effective and well-resourced public health
measures to prevent infection and contagion, and implement well-targeted
policies to support health care systems and workers, and protect the incomes of
vulnerable social groups and businesses during the virus outbreak.

 Supportive macroeconomic policies can help to restore confidence and aid the
recovery of demand as virus outbreaks ease, but cannot offset the immediate
disruptions that result from enforced shutdowns and travel restrictions.

 If downside risks materialize, and growth appears set to be much weaker

for an extended period, coordinated multilateral actions to ensure effective
health policies, containment and mitigation measures, support low-income
economies, and jointly raise fiscal spending would be the most effective
means of restoring confidence and supporting incomes

 Government should provide food to the people who are in quarantine in

this way poor people also survive in this pandemic

 Government should open essential industries with SOPS it will give some
resort to the economy

 Develop countries should give relief in the liabilities of poor countries

IMF managing director Kristalina Georgieva in a press release suggested that four things need to
be done to fight against Covid-19 and avoid or minimize losses. Firstly, continue with essential
containment measures and support for the health system. Secondly, shield affected people and
firms with large timely targeted fiscal and financial sector measures. Thirdly, reduce stress to the
financial system and avoid con tangent. Fourthly, must plan for recovery and must minimize the
potential scaring effects of the crisis through policy action .

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Coronavirus: The world economy at risk

 One think more government should spread awareness regarding covid-19 among people in
this way the burden on health department will be less. Due to this government save money
which they spend to buy ventilators etc. and then they use this money to support economy.

Conclusion
It is observed that the economic recovery from this fatal disease is only possible by 2021 because
it has left severe impacts on the global economy and the countries face multiple difficulties to
bring it back in a stable condition. Due to Covid-19 there is also a real threat of losing the jobs
because with business shutting down that shows that companies will be unable to pay to workers
resultantly they have to lay off them. This lead poverty. Concerning the serious and worsening
conditions all over the world, nations need cooperation and coordination among themselves
including the help and mature as well as sensible behavior of people to effectively fight against
Coronavirus. Otherwise, because of the globalized and connected world, wrong actions and
policies taken by any state will leave a severe impact on other countries as well. This is not the
time of political point-scoring and fight with each other rather it is high time for states to
cooperate, coordinate, and help each other to defeat this fatal pandemic first for saving the global
economic and financial structure. We should help each other.

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References

https://news.cgtn.com/news/2020-05-29/COVID-19-leads-to-dramatic-unemployment-young-
people-suffer-the-most-QSUcPNPJ0Q/index.html

https://www.worldbank.org/en/news/feature/2020/06/08/the-global-economic-outlook-
during-the-covid-19-pandemic-a-changed-world

https://www.csmonitor.com/World/2020/0506/No-jobs-so-what-future-Half-the-world-s-
workforce-on-the-edge

https://moderndiplomacy.eu/2020/04/22/impact-of-covid-19-on-global-economy-structure/

https://www.oecd.org/berlin/publikationen/Interim-Economic-Assessment-2-March-2020.pdf

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Coronavirus: The world economy at risk