Economic Survival in the Face of Adversity

The COVID 19 pandemic has hit the world economy badly and threatens global economic shutdown.

Since the first case was announced of Coronavirus in China in late last year, and its declaration as a global pandemic by World Health Organization on March 11, its economic impacts have continued to manifest (WHO,2020). In the onset of the epidemic, various stakeholders were seen to outplay its adverse economic consequences not only to a country but the entire world.

In London, the number of cases has increased to 84, 279 and 10,672 deaths by April 13 2020 (WHO,2020). These numbers have changed the standard way of life and conduct of business. A requirement for social distancing and isolating the infected people have seen a lockdown of the country. Accordingly, this has resulted in partial economic lockdown.

The COVID 19 has both direct and indirect impacts on London’s economy. Perhaps this fact makes the pandemic a vital threat to the country and region vibrant economy. The government and other organizations are required to spend excess money in taking care of the patients and minimizing its spreads.

Money being pumped in the health sector could be used in other industries to propel economic growth in the country. Some of this money will have to be taken from different areas of the economy to support the health sector.

These direct impacts to the economy will be immediately experienced in the country. Nevertheless, with the existence of reserve money for such pandemic, the state can be cushioned from the much deteriorating economic impacts. While this is possible, it is the in-direct impacts that are harmful.

One of the primary responses to COVID 19 is social distancing and staying home. As a result, many economically active individuals have stopped working or are forced to work from home for sectors which working from home is possible. These have definitely reduced the productivity of many companies hence a reduction in their profits.

In a collective move, companies in London are proposing pay cut to ensure their sustainability during and after the coronavirus pandemic. All these factors interact, leading to less per capita income of the individuals and companies hence a low tax to the government. Worse, it’s the government will have to pay 80% of the salary of the people not working during the pandemic

In the United Kingdom, the sports industry has shutdown with no sporting activity that is ongoing. This means that the country economy is losing approximately o.6 Billion pounds per month which is the money the population use for sporting and recreational services.

Another economic angle of the coronavirus is the closure of many international flights hence limitation of the foreign and international businesses. Additionally, the virus has brought in uncertainty in UK businesses.

Well, all hope is not lost as Former Bank of England boss Lord Mervyn King assures that the country will recover from the economic impact of the coronavirus. However, he agrees that the lockdown of the economy will have adverse economic effects hence should be avoided at all costs.

Continue your journey with our comprehensive guide to Economic Impact Wildfire Disaster Greece.