Effects of Covid-19 on Finance and Economy

Introduction

Covid-19, a pandemic that was previously referred to as a significant Chinese epidemic, has now spread at an incredible pace to all other parts of the world, now the world’s major pandemic. It’s now very significant that the virus has caused numerous negative impacts on the affected nations, which are social, economic, and political implications. Coronavirus disease without demur, has evident implications on economy and finance. Most of the productive population, at their epitome productive stages, of various economies succumb to this infectious disease, governments redirect their pre-budgeted development funds into fighting this menace and other contingency expenditures. Most countries are now brought into a sudden standstill by this menace whose remedy is unknown to date. Neither is its end time.  Generally, on an economic basis, this global crisis has caused inevitable implications such as reductions in the supply chains, tremendous economic spillover, and altering the containment measures among others mainly borne by the investors. In reality, the magnitude of the pandemic’s impacts relies on the mechanisms put in place to control the spread.

Cost measurement is a very vital aspect to be looked into. For instance, there are various ways nations have diverted their resources into this pandemic (Gressic K). Primary Cost measurement criteria based on Covid-19 impacts include but not limited to: Reduced labor supply and productivity due to time wastage by caregivers of Covid-19 patients, premature deaths of the productive populations and sickness among the infected persons, loss of the skilled workforce, cost on improving health facilities to contain then spread, expenditure on test kits, appropriate clothing of medical officers handling Corona cases, etc., expense on research and improvement pertaining the disease, cost on creating awareness about Covid-19 among the general population through communication and information passage and last but not least, cost on mental torture, public health sufferings and pains bored by the victims (Wenham C).

Massively increased imports and almost equivalent reduced or no exports at all. As third world countries tend to import the costly necessary health equipment to enhance their health facilities in fighting Corona, it mentions that there is no foreign exchange coming to the country. This is mainly due to lower domestic productivity as most countries are also practicing quarantine; no or fewer people get involved in less extensive economic activities such as farming and or other self-employment schemes of which, on their own, cannot run the economy (Ellis-Petersen).  As the budget expenditure comes under massive economic constrains, the balance of payments becomes extremely obsolete. Such situations initiate debt repayment challenges hence victims acquire for further aids from reliable and willing international communities like world bank who also face the same problems of economic crisis due to large numbers making requests concurrently (E.).

Economic models aid in contemplating the impacts of this pandemic in the general world. It tends to clarify that the impacts of Corona virus disease will tend to cause much longer impacts on sub Saharan Africa with helps only sought from the international communities. African states are therefore advised to put put into place comprehensive policies relevant to the individual target countries. This will essentially introduce and improve on the education, treatment, control, training of necessary containment skills and prevention programmes (Wenham C).

Conclusively, without demur, Covid-19 has caused massive negative economic and financial impacts in the world. It has redundantly reduced the economy of the world class states a bit but the developing countries have felt the heavy weight, from bad economic positions to worst devoid the preplaced remedies by the World Health Organization (WHO) towards Covid-19 containment techniques. The world should embrace the directives given by the WHO to help in coming out of this menace.

References

E., Torres. Backlash Against Asians Could Hinder Efforts to Conntain Coronavirus . Research Thesis. India: ABC News, 2020. Document.

Ellis-Petersen. THe Guardian. 04 March 2020. Document. 12 04 2020.

Gressic K, Gelpi A, et al. How a New Outbreak Revived an Old Debate on Reproductive Rights. Research Report. Brazil: Brazilian Newspaper, 2020. Document.

Wenham C, Smith J et al. “The Gendered Impacts of the Outbreak.” Lancet 2020 (2020): 846-848. Document. 04 03 2020.