The Dying Economy - Adverse Effects of Corona virus Pandemic

source

It is no longer news, the world is currently dysfunctional, to be straight forward now, the world is barely operating, not even at its bearest minimum. Europe has been hit, oil market crashed badly, Jobs loss is on the increase, that's an economy plunging into the deep abyss. Except you do not live on the planet or probably you use Internet explorer to browse the net, you would know all these things because they are not new anymore.

90% of nation's GDP is falling below the lines due to the lockdown, we have just reached the first quarter of the year and no proven vaccine yet to counter this deadly crisis. It's sad to report, this might just be the beginning. This is a new month, what will happen to the second quarter of the year? No one knows.

The virus has caused a global damage to world economies, I can not start to tell you how bad the oil market is right now, it's so unspeakable, this is the first time oil market has gone below par, it's almost worthless. Countries like Nigeria that it's economy depends solely on Oil should brace themselves up for a drastic economy fall out.

Recently, a leading financial institution in the country is planning to lay off 75% of its contractual workers, plus its actual workers getting a 40% pay cut. I say this is just the start, other financial institutions will follow suit IF there is no solution in sight. You cannot as a private company continue to pay your workers if they are not working or if there's no financial transaction or movement for a month or more. You will be forced to either shut down or take drastic steps to keep you active.

Lately, I heard an airline company laid off its workers too and people want to blame. If I may ask, who do you blame? Who's flying around theses days? Have you checked air traffic and compared it to last December or this January? A business is solely for profit making except the NGOs.

What happens when the economy crashes

• Hunger will set in

• Job loss will be on the increase

• Political disability

• If local government and utilities are affected, there won't be electricity & water

• Mass Protests

• Lastly, death toll will be unstoppable

My Expectations

The first economic crisis was in 1929, with a repeat in 2007-2009.

It is believed that the economy recovers or bounces back magically itself. I will agree with this. In many cases, the economy has done this magic and we can only hope that the lockdown be eased to allow free trade, businesses to revive itself. The economy is so fragile that it responds immediately to threat against it. An economy can not grow if you force people to go back to work, knowing fully well they are putting their health at risk.

I pity the small scale business owners [SMEs], they stand at a higher risk of closing down business first to never return as compared to Large scale business who may have enough funds in its reserve to bounce back once this is over. Some countries get stimulus package which is said to be quite laughable while others do not get a penny. You really think the economy will do a stunt any time soon? I hope so.

In essence, let's all brace up for not just the impact but the aftermath of this crisis. I as a person believe there will be a solution soon. I would also implore the West to look at how African countries like Madagascar has managed its situation with zero deaths, learn from the process and speed up the adoption process. No one is prepared for the aftermath, we have to gear up and maintain the safety procedures / guidelines as proffered by the CDC in your respective countries.

STAY SAFE