The spread of Covid-19 has taken aback human beings. There is an increase in the number of coronavirus cases and their direct impact on economic activities. The negative consequence of the pandemic on human life, says John Giorgi.
Human life has come to a near standstill with the imposition of strict restrictions on physical movement to limit coronavirus spread. Survey reports reveal that both the immediate outlook and the long-term damage the pandemic has caused to the growth are shocking. The global GDP in the past year has seen a downturn because of market exchange rates. Despite the efforts of international governments, monetary and fiscal policies have suffered. A deep recession has triggered economies all across the globe.
The impact of Covid-19 on per capita income as illustrated by John Giorgi
Statistics reveal that the pandemic has resulted in a plunge to a global recession in the past year. The per capita income has contracted in most parts of the world. The developing economies and emerging markets also have experienced a domestic outbreak of the virus. Additionally these economies will be affected by monetary headwinds from different quarters. The pressure on the healthcare system, drilling remittances, loss of tourism and trade, and subdued flow has resulted in financial loss.
In addition to this, the tight financial condition amid the pandemic has necessitated state governments to take strict measures to deal with their economic issues. The pandemic has resulted in an unprecedented collapse in different industries. Demand for distinct commodities and metals have seen a downfall.
The worst effect of the pandemic on monetary issues
Although the spread of Covid-19 is slowly getting restricted by way of different regulations, its effect on the economy is prolonged. The recession is profound, and businesses are finding it difficult to survive. According to John Giorgi, cases of default and bankruptcies result in a financial crisis in most countries. The catastrophes are slowly taking up the global economy with a pointy space. Hence, global growth is affected, which requires additional action by bureaucrats and policymakers. It is by the continued effort of higher authorities to handle the emerging crisis. The low-income economies that have limited healthcare services require increasing attention.
Only global cooperation and coordination can help economies to come out of this recession. Therefore the monetary actions which are necessary for the alleviation of economic damage include international support. It will provide a tremendous opportunity for achieving the goal of public health. It will thereby enable a robust global recovery in due course of time.
International authorities have to undertake policies for rebuilding long term, and short term entails. It will help in strengthening healthcare services and give a stimulus to recover growth. Moreover, support from the private sector and the continued flow of money to the citizens has become mandatory. Countries must focus their attention on sustaining financial activities with the backing for essential services, firms, and households. Policymakers have to address the short-term economic damage and health crisis with immediate policies. It will take care of the long-term as well as short-term reform programs.