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COVID-19 Outbreak: The Entire Scenario Alters


By Parisha Malhotra

COVID - 19 has affected everything and everyone around us. People have no other choice than staying at their homes. But on the Brightside, nature is reviving. From clean water in Venice to improved water quality in Yamuna and Ganga, from reduced levels of air pollution to the return of dolphins and swans to Italy, nature has surely restored beautifully during this pandemic.
But not to forget, there are several serious implications from COVID-19 on the global economy. The COVID-19 outbreak has infected more than 25 lakh people worldwide, on 21 April. Its spread has left businesses around the world counting huge costs. The world’s biggest companies have begun talking of broken supply chains, interrupted manufacturing, hollow stores and flagging demand for their wares. The stock-market plunge this week was the steepest since the financial crisis. Investors fear that the outbreak will deteriorate the economic growth and government action may not be enough to control the decline.
There may be a cut in the planned investments and even start laying off workers. In the United States itself, the number of people remaining unemployed recorded a high number signalling an end to a decade of expansion of the world's largest economies. A major vulnerability for businesses in the United States and Europe is their snowballing reliance on China as a supplier and customer over the last 10 or 20 years. At the same time, Chinese consumers are buying less. Apple said the closing of stores in China would depress sales of iPhones and other devices. Mastercard cut its growth forecast in part because people are taking fewer international trips. Appetite for new bonds, especially those issued by less-creditworthy businesses, has fallen off.
To prevent the pandemic, governments of different countries have decided to shut down. In India, the shutdown has been implemented in the entire country and is being referred to as an 'unprecedented gamble ', no one knows for sure what the future beholds. On the other hand, there is a partial shutdown in the US. These are just a few examples. The impact of lockdown will only worsen the longer it lasts. But it can be witnessed that the governments have no other choice but to implement the lockdown stringently to prevent the outbreak from spreading. There exists a paradox.



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