COVID-19 is the recent form of coronavirus that is causing large-scale worldwide panic and pandemic. The COVID-19 Pandemic has Caused millions of deaths across the globe. The virus has affected the lives of billions by inducing a global economic crisis. People are Affected more and more each day due to Major economic-crisis in most countries. There has been a decrease in the GDP across various sectors and industries in the world. It’s impossible to calculate the Accurate damage of the COVID-19 economic crisis. According to the International Monetary Fund (IMF), the world is facing the largest economic crisis since the Great Depression of the 1930s. Almost all the sectors face a global economic crisis due to this COVID-19 situation.
Major sectors affected
- The tourism and travel sector has been hit the hardest due to the restrictions in world travel.
- The crude oil industry’s value has dipped since the lockdown due to the decrease in demand.
Economic Crisis in the States and the EU
- The United States saw a rise in the unemployment rate, increasing from 4% to 14% at the end of June 2020.
- Especially the leisure and hospitality sectors are beyond repair in the States.
- Millions of people have filed against unemployment. The United States Government is providing relief funds to help overcome the economic crisis to some extent.
- GDP has dropped to 5.8% as of June the United States of America.
- Among the countries of the European Union, Italy and Greece are the damaged ones.
- Poland faces the least economic crisis within the European Union.
Economic Crisis in Latin America
- Many countries of South America initially ignored the COVID-19 pandemic and, this led to complications.
- Most countries in South America share borders and, there is a lot of across-border transfer of the disease.
- Like most countries, this continent also faces an economic crisis. The GDP of the Countries is down to 3.7%.
Economic Crisis in India
In India, the GDP has dropped to 9.4% as of June. The unemployment rate is higher, and it continues to rise. It is at 27% accounting for around 120 million people being unemployed. The daily wage workers in construction industries and transport sectors face an economic crisis due to the pause or cessation of work. Many companies have been cutting down salaries. The worst is laying off employees due to the massive decrease in the flow of the economy.
Sectors affected the most in India
- Airlines and Travel Industries
Flight restrictions have led to an economic crisis in these sectors.
- Automobile Industry
Due to the drop in demand for automobiles, manufacturing has decreased, leading to a loss in this sector.
- Real Estate sector
Many construction projects have resumed work, but there is a loss in the property sector in India. Many daily wage laborers have become unemployed due to this.
- Manufacture and Export Industries
Most companies suffering losses are unable to pay their employees.
- Hospitality sector
There is no demand for this sector due to the lockdown measures. Also, there is a prediction of unemployment rates in this industry.
How are countries coping?
Countries have been gradually lifting lockdown measures to reduce the economic crisis. But the population of the world is facing more damages due to the economic imbalance. There is statistical information regarding the impact of the COVID-19 pandemic on the economy, but there is no way of accurately calculating the exact implications of the global economy. Most societies have geared up to deal with the economic crisis in their ways.