The Economic Slowdown

The year is 2020, the year which we all people dreamt of being the most wonderful year of our lives where we would experience serenity and faith. But, on 31 December 2019, A new virus was discovered which is now being referred to as COVID-19, this virus is a contagion that has not only made the people of the world suffer but also the markets. Starting with China, the virus spread faster than people predicted and markets around the world have continued to fall ever since. According to The World Economic Forum, the S&P 500 index of US companies fell by 11.5% towards the ending week of February. Around the world, market indexes are falling at a very high rate and we also keep seeing reports of trade suspensions due to the same. Investors around the globe continue to suffer as they see their money going down. This virus could cost airline companies around the world around USD 113 Billion in revenue as per a report by the IATA. But, apart from big multinational companies, there are many more people who are losing money, they are the Micro, Small and Medium Enterprises (MSME)’s. These small enterprises cannot sustain their livelihood amidst this crisis and reports around the world have concluded that the losses for them would be significant in nature. Governments around the world have initiated full lockdown procedures to stop the spread of this virus, and due to this local restaurants continue to be out of business and further impacting the restaurant business as a whole. The challenge is now for the Governments to be able to provide to their people and help everyone get out of this crisis by sanctioning loans to businesses through the national treasury, especially to the airlines as the aviation industry is one which can only earn when the aircraft is airborne and not while sitting in a hanger. Reports say The World may not recover from this economic impact but it is possible through efforts of people around the globe. Economists around the world predict markets to be back up and running when a cure for this pandemic is finally discovered, until then it will also be our responsibility as Global Citizens to help businesses in and around us.