Since the onset of the novel Coronavirus, livelihood among people globally has changed. Social distancing, self-isolation, and travel restrictions have all affected economic activities, therefore testing the delicate sectors that act as the backbone of the world’s economy. Tourism sector was the first to feel this impact. The other sectors have followed making the disease to quiver the global economy. Manufactured goods needs have decreased as the medical supplies demand has increased, the trend has happened in the food sector where individuals are stocking and panic-buying food and groceries to counter the expected effects of lockdown (Nicola et al., 20). One might argue that developed countries had a better chance in dealing with the pandemic but it has been different, Coronavirus disease has affected countries such as the United Kingdom (Leslie 9). Many countries are therefore, struggling to contain the virus from both the developed and the developing side. The strict containment measures associated with the Coronavirus disease have affected primary, secondary, and tertiary levels of the global economy.
Food sustains life. Agricultural sector sustains human’s food demands. Social distancing and movement restrictions have crashed the catering sectors, a major consumer of agricultural products, hence, testing the resilience of agricultural sector. Panic buying of foodstuff has increased with the fear of lockdown measures (Nicola et al., 15). Shortage in supermarkets and other stores has followed since the pandemic caught them unaware, hence, unable to withstand the increased demand. Restrictions in transport of goods have affected transport of perishable goods such as vegetables (Nicola et al., 15). As countries all over the world have strict rules on movement, the lockdown and curtailed movement rules have been against supply of agricultural produce as security officers and medical practitioners carry various tests on the drivers. Such practices have discouraged many possible suppliers as fear has overwhelmed them. Many willing suppliers have opted to keep their produce and choose other income sources. However, Coronavirus disease has tested the flexibility of this important sector; the government needs to increase its commitment to boost the deteriorating economy.
The pandemic has also affected the manufacturing stream, the social distancing measures and the fear of infection has resulted to closure of many manufacture industries. Issues arising from importation and self-isolation have all led to work at home policy. This has been ineffective in manufacture industries since they use the policy of chain production. With the current situation the opposite has been happening with governments issued social distancing rules. Industries will try harnessing their production to trim their revenue expenditures. In Chemical Industry, for example, the production will shrink by 1.2 percent (Nicola et al., 19). Such effects will continue to affect industries until the world arrives to a lasting solution.
Learning is integral to a society, Coronavirus disease has made it difficult for learners go to school. The fear of the disease spreading has pressed governments to close all schools. There have been various social-economic effects of closure of educational facilities. For example, in some countries schools provide free meals to their students. Such students are suffering from hunger with the virus prompting closure of learning facilities (Nicola et al., 21). Learners from poor background are likely abandon their studies to fill the gaps of their loved ones who died of the virus (Nicola et al., 21). Students with poor background will struggle to raise their upkeep money, which may result to them ceasing their studies. Poor network coverage and low technology capabilities will affect learning, as most governments announced that they shall be airing the educational materials using technological means, rural areas are yet to have a capable internet supply, and this makes access to educational resources difficult (Nicola et al., 21). Therefore, students from disadvantaged areas will have a difficult time when learning resumes.
Financial sector has been on the receiving end of the virus. Reports indicate a declined use of Automated Teller Machines (ATMs) worldwide, which has led to decreased transactions (Ozili 9). Use of credit cards has substituted ATMs, minimizing the spread of the virus. Financial technology companies have experienced low revenues (Ozili 9). Online shopping has increased in the last couple of months due to the strict movement restrictions measures. Credit risk among banks and other financial facilities has increased with loans evasions looming (Ozili 9). Certainly, the virus has affected financial industry, considering the fear factor associated with the pandemic, only a solution to the virus that will solve the issues within financial industry.
The strict measures associated with the pandemic have affected the various macro level units causing serious implications to the world’s economy. The future repercussions of the disease remain unknown, but at a short run, the disease has affected the world’s economy essentially. One can argue that the disease has changed our lives and it is accurate to say that the disease will have a lasting impact on our lives. Social distancing and isolation measures will affect our interactions in the society both now and in future. Coronavirus disease’s psychological impact will likely last for years to come.
Ozili, K. et al. “Spillover of COVID-19: impact on the global economy.” EBSCO host, doi: 10.2139/ssm.3562570. pp. 9-10. Accessed 28th May, 2020.
Nicola, M. et al. “The Socio-Economic Implications of the Coronavirus and COVID-19 Pandemic: A Review.” International journal of surgery (London, England), S1743-9191(20)30316-2, 16 Apr. 2020, pp. 15-23. doi:10.1016/j.ijsu.2020.04.018. Accessed 28th May, 2020.
Leslie, J. et al. “Long haul lockdown: Three scenarios for the impact of coronavirus on the UK economy.” https://voxeu.org/article/three-scenarios-impact-coronavirus-uk-economy. Accessed 28th May 2020