Global Economic crisis
Updated: Oct 11, 2020
The whole world is undergoing a crisis now. Amidst this COVID-19 pandemic, the world is experiencing a disaster that we have not experienced in our lifetime. Numerous people across the world have lost their lives and millions and millions have got infected. The livelihood of people has been hit hard. Governments have been forced to implement lockdown in their respective countries in order to flatten the curve. People are confined to their homes and this has brought down the consumer spending curve considerably. This horrid situation has made people stock their daily essentials only. Consumers across the world have spent very less during these testing times, as most of them are facing a huge fall in family income. This pandemic is therefore not only a health crisis but a severe economic crisis also.
In April 2020, the International Labor Organization had warned that almost half of the global workforce is at immediate risk of having their livelihoods destroyed. People have suffered massive damage to their capacity to earn a living. Without alternate sources of income, people have found it almost impossible to run their families.
"A total of 81% of the global workforce of 3.3 billion people have had their workplace fully or partly closed. " - BBC, 7th April 2020
Industries that have been hit worst are Travel and Tourism, Retail, Real Estate, Banks and Financial Institutions, and Automobiles. For all these industries, they have no choice but to play the waiting game and pray that business after this pandemic will go to a significant high once again.