Global Recession 2020, are you ready?
Global Recession 2020 is real or not but it seems like it is going to be worst nightmare for all the economies of the world.
Stock markets loosing their game, ban on traveling, crowd gatherings, educational institutes on pause, production stopped, deserted children parks and shopping malls, where do you think it is going?
2019 has been a challenging year for businesses and said bad bye instead of goodbye with deadly virus Covid19.
Virus woke up from china and travelling to rest of the world has made economists to look for a next big recession of the history of the world. Initialy it was assumed that it is a local problem of Chinese but look how it has been spread over the world in no time.
This may remind us 2007-2008, many people thought it was manageable and later whole world faced the same thing which we may again face it.
Here is what the writer from the guardian has to say;
If history is any guide, the global economy will eventually recover from the Covid-19 pandemic, but the idea that this is going to be a V-shaped recession in the first half of 2020 followed by a recovery in the second half of the year looks absurd after the tumultuous events of the past week.
Covid19 is like an earthquake;
It has just arrived, it is in process to shake the whole world, I wonder what would be the after effects of this? As of now economists have no confirmed data of happenings around the world but it can be felt with current situations that a recession is coming and it will begin showing in this summers.
Last day UN Chief asked major economies to gather themselves and work together to fight this virus else it will not leave good marks on the world and its people.
Well as every recession effects 2 ends Supply and Demand. Covid19 will play the same, Supply from the major countries have been stopped due to shut of industries and production houses, On the other hand Demand has also decreased as people will not buy any product but sit at home and think about how to save more and more.
When you sit at home you will not spend on buying new clothes, not eat at new restaurant every week, even you may not go exercise because of fear. See Demand and Supply rule becomes obsolete here. Shocking no?
These are the shocks we are having because of novel Corona Virus Globally, now let us discuss some after shocks we may face;
- When we eat at homes for 2-3 months we will not go to restaurant for next 6 months – 1 year or may be more because we will be afraid that there might be chance of getting sick again.
- Many travelers or tourist may not go to places like Italy, France or UAE because we may think it was not properly taken care of.
- As we will spend much of our savings when we sit at home during locked down, we will work on saving more than spending.
- Major companies will produce less and less people will be required for it because of less demand.
- Poor people who are dependent on daily wages will be effected the most because do not know for how many months they will not be able to get any work.
- Relations among countries may effect and it will take time to regain that confidence.
- Remember they are saying not to shake hands, so wonder for how many months you will do the same?
- People will be afraid to invest in stock market.
- Educational institutes will be shut down and become online. Education will be effected the most too.
At the end let’s discuss some necessary measures we all should take;
Precautions from novel virus;
- Wash hands.
- Acoid unnecessary gatherings.
- Visit doctor in case of any medical emergency.
- Take good care of health, stay healthy and hydrated.
How to make yourself economically healthy?
- Spend less.
- Start working online if you own any business and work from home if you have a job.
- Start learning some new skills which could give you some extra bucks to run your household.
Global Recession 2020 is hard time for us all and it will pass. Stay connected with Marketist for more blogs.
Writer: Imran Nadir