Covid's Affect on the Global Economy

The article referenced in this post was published on July 15, 2020, titled "How Covid-19 Has Affected the Global Economy" by Asad Ravjani, an entrepreneur & philanthropist.  It goes into detail about the struggle of the economy during the pandemic and how difficult it will be for certain industries to recover.

Due to almost the entire world going into lockdown, Ravjani discusses how the stock market crashed due to this and how this was the worst since the great depression era.  For example, when air travel or cruise travel halted, these stocks hit an all time low.  Airlines, such as British Airways, decided to retire it's 747, also know as the "Queen of the Skies" dut to the lack of travel, when initially planning to retire them in 2024. Stock prices were so low and people started to buy tons of stock.  As countries begin opening up again, we see that the stock market and prices began to rise again, especially stocks where now high demand products are wanted, like Amazon which benefitted from the pandemic because consumers didn't need to leave their houses.  The fear that the virus and pandemic has caused has slowed down a lot of businesses and will take time to recover, and thats if they were able to survive the pandemic.  During this timeframe, the GDP dropped off to almost 5% (4.8% to be exact) during the 1st quarter of 2020. It is almost a domino effect because while this is all happening, so is the increase in the unemployment rate which took a huge hit and to this day, is still high, which is why the government stepped in with relief for the CARES act.

One industry that Ravjani discusses that is and will continue to take a hit is the travel and tourism indusrty.  I agree with this.  Around the world, there are many countries who rely on tourism as a source of revenue for their economies.  One of the things that I've noticed personally is that even if some countries open back up, some of those same countries aren't taking travelers from the U.S. and other countries.  With these types of restrictions, no country relying on tourism have their economy back to normal quickly.  At this current day, some countries do allow U.S visitors but they must vacation in place for the length of their stay or 14 days, whichever is shorter.  Some families will revert to staying in their own country becuase the point of a vaction is to explore and some might not want to waste the time and money if they won't be allowed to do that.

So with everything that is currently going on, the economy is taking a huge hit worldwide.  No one could have imagined that the world would be in a pandemic for this length of time.  I sure didn't but if this is what it takes to save lives and slowly get economies back to a somewhat normal state, then this is something we have to do, not only as a country individually but globally with every place on this panet taking precautions.

 

Link to article: https://www.entrepreneur.com/article/353313

 

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