At the end of 2019, no one would have ever thought that 2020 would be such a whirlwind. Sure, we all asked for a different year or maybe a better year but none of us asked for this crisis!
The main problem definitely was to contain the virus but every catastrophe has an aftermath. This one is going to be an “ECONOMIC EPIDEMIC”.
Have you heard the game of dominos? One falls and then the other and so starts the spiraling…
The same has been the condition of the world today. The outbreak is estimated to have impacted the world economy in a way that it will take years to come back. The main problem being that it affected the economies of the superpowers adversely.
So, what are the changes that one has to prepared for?
First of all there has been a prediction that there shall be an atomization of the society. Now what’s that you ask?
Well, there will be minimum human interaction and most business will be made online. This will help the cut the costs and get more business. Since, the virus has also a susceptibility of coming back, this way of doing business seems like a good measure. The society shall also be divided into different sectors according the impact. There are going to be people who will be hit by the pandemic more than several others. At the end of the day, it depends on your position in the food chain. Will you be eaten by the Lion or the cat?
Another area that will hit is International trade. The pandemic has not only affected people globally but even the economy. In such a scenario, it’s important that we must focus on the national trade first. It is the responsibility of every nation to make sure it’s economy is back on track and hence the focus on international trade will be lessened. The estimated amount of imports will definitely fall down, which will major exporter countries like America, Japan and China.
Machines are the future. Have you heard this statement before? It’s time these words come true. A lot of companies have been expected to cut down manual labor costs and hence the machines would be our pathway to the Jetson world. The virtualization of the economy will affect both the white- and blue-collar workers in a bad way.
The most obvious consequence is the effect on the growth rate. The growth rate is expected to be falling down by 50%, making it difficult for the economies to catch up.
Last but not the least, is the BIG economy impact. In every class there a set of rankers who set the bar. They become the scale to measure your success but are also influencers. They contribute a lot to whether a teacher would cut a lesson or not for the test! We all have begged them at some point to get a favor from the teacher!
It is the same with the economies. The BIG ECONOMIES like America, China, and many more that are getting a vivid hit will in turn have an effect on the smaller economies as well. Guess, it is the domino effect after all!
If after reading this article you are thinking you are in for some bad times, well we’ll try and get you some good news too! Stay tuned!