Essay Sample on Impact of COVID 19

Introduction

Covid 19 pandemic stroke at the beginning of 2020 in Wuhan, China, has dramatically affected all sectors of the economy. The pandemic triggered a massive loss of lives, and many businesses have closed down. Many people have lost jobs, and international trade has deteriorated due to lockdowns set by governments. It is uncertain when the economy may rise back to normal since the virus is yet to subside entirely. Globally, oil products have gone down, the stock market has crashed due to the fall in productivity, and the economy keeps deteriorating.

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Income Inequality

In the past years, income inequality has been reducing because of the gap between developing and most developed countries. However, after Covid 19 hits the world, income inequality will rise since some countries cannot contain the little resources they have. Most developing countries have used even the resources they had set aside for development to sustain their citizens during these crises. Moreover, human labor has been replaced by technology since all the work is done on the internet; securing these software and equipment requires a lot of capital, which most countries struggled to put up(Nicola 185). Lockdown in almost all countries has attracted huge debts and weakened the taxation systems due to the closure of businesses and layoffs.

Governments have incurred massive debts that the central banks have tried to regulate under the monetary policies. The accusation of protective masks, gloves, health workers gear, and vaccines has squeezed many countries' budgets as they are trying to contain the spread of the virus. However, some states have not been effectively putting into use the loans they get from lenders and have ended up taking much than they can pay.

Financial Instability

Financial instability has pushed to temporary food shortages in most countries because of the disruption in markets and rising product prices. The vulnerable in society have felt the hiked prices' effect since they could hardly afford the money to purchase the items. Well off countries went out of their way to provide for those who lost their jobs and less fortunate. The agricultural sector, which is the economy's backbone, was positively affected since crucial input was minimized, and access to markets and fertile lands, faced many restrictions.

Manufacturing companies in the world have shut down due to the pandemic. Most vehicle companies have been unable to sustain their production, hence lowering their tools (Fernandes 114). Vehicle sales have gone down by a significant percentage as it is no longer a priority to many. Savings used to purchase new cars have been used up in feeding families and offsetting bills that keep accumulating despite the crisis. Textile and clothing industries have also been hit since the material is not safe, and people are afraid of buying imported outfits to avoid contracting the deadly virus. Additionally, most manufacturing industries have been profoundly slowed down by the crisis.

The tourism sector has been disrupted because of the closure of international flights and the restriction of movement. As it is known, tourism has played a significant role in improving the economy. Due to the pandemic, hotel industries have been deserted and are yet to recover from the same. Most of the tourism agencies have used up all the resources they had set aside for their companies' welfare with other pressing issues to the point of running bankrupt and shutting their doors. Social distancing has been made compulsory in all areas, and since tourists engage a lot, they are unable to converge for fear of infections and respecting government laws.

Retail Sectors

As much as some shopping centers closed down after the virus struck, the Coronavirus also positively impacted the retail sectors. Retail markets have made selling easier by embracing digital platforms such as Amazon. Here, retailers have benefited in sourcing for customers who happily made transactions freely since they are contactless and fast enough to visit the markets. However, the demand for products in the markets has been higher than the supply, and most shelves ended up empty. Innovators have been molded out of the crisis; opportunists took the chance to develop new products' that acted as alternatives for products that ran out of the market.

This crisis has not spared the bars and restaurant sectors; governments ordered that they be closed down until further notice to avoid crowding and contain the situation. Others who met the health regulations were only allowed to serve takeaways, which is not enough to pay bills and sustain them. Most of the workers were sent home, and only restaurant owners and maybe one or two workers were left to offer the limited services available.

Conclusion

Thus, forms of communication have been improved because technology has continued being used during the pandemic. Most companies encouraged their employees to work from home and communicate through emails and meetings, and conferences use zoom and other platforms to engage. Networks have been created during this process; YouTubers and marketers have benefited from these connections. They have gained followers and also customers for their products and services. Despite negatively affecting the larger part of the global economy, the virus has positively impacted other areas, like the internet and social media.

References

Fernandes, Nuno. "Economic effects of coronavirus outbreak (COVID-19) on the world economy." Available at SSRN 3557504 (2020).

Nicola, Maria, et al. "The socio-economic implications of the coronavirus pandemic (COVID-19): A review." International journal of surgery (London, England) 78 (2020): 185.