The impact of the National Shutdown on the Economies of countries
The worldwide epidemic of Corona has caused the globe to panic now. Many countries such as Spain, Singapore, Thailand, Russia, South Africa, New Zealand, USA Saudi Arabia, India, etc…have declared lockdowns either in the entire country or in specific states. Keeping the country closed for an extended period can affect the economy of the country, and since this is a global affair, it affects the economy of the world as a whole. The United Nations Department of Economic and Social Affairs has already warned that the COVID-19 pandemic will disrupt the global trade and economy. Several countries have closed their national borders banning the movement of people, and this has a blowing effect on the countries that make a living purely based on tourism.
The predictions for 2020 were that there would be a growth of the global economy by 2.5 percent. Still, after the current crisis of COVID-19, the united nations has warned that the economy of the world will not only stagnate but will shrink by 1 percent, and this could get worse if the restrictions on economic activities such as the curtailment of airlines, manufacturing units, etc.… are further extended. Not only the economies, but the lives of people have also come to a standstill. Lots of people in several countries are having the risk of losing their jobs. During the Economic Depression of 2009, the world economy had shrunk by 1.7 percent, and COVID-19, if proven to be harsher than that, can be a severe blow to the globe as a whole.
India’s economy started growing slowing in the 21st century, and the late 2000’s it reached7.5%, which would double the average income by 2020. All of these growth efforts could go in vain due to the current pandemic, which has shadowed over the entire world. According to the Governor of the Reserve Bank of India, India is comparatively shielded from the global depression. However, it will still have specific impacts due to the country being an intricate part of the world as a whole. The nation as a whole has been taking active measures to contain the pandemic and also to do the best it can for the people who can’t afford their basic necessities. The Finance Ministry has announced that the Union Government will be distributing groceries and some other essentials such as gas cylinders, and there has also been a declaration that the interest on loans need not be paid for a period of three months. All of this will help the citizens to overcome this situation in a better manner but will indeed have an impact on the economy of the country.
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