Lockdown was the only option left to get control of Covid-19. Every coin has two faces, it controlled the virus but got harsh on the livelihood of many families. Covid-19 has not only impacted the world economy but our personal lives too. Most of the country had to face a huge fall in GDP. Businesses were closed, earning capacity of people substantially reduced. Tourism, aviation, railways, film industries were all shut during a pandemic. All these factors resulted in a monetary loss in people. Severe financial stress emerged after the pandemic.
Covid-19 and debt
Covid-19 has a bad impact on everybody. The Covid-19 crisis threatened a large number of countries to fall into debt distress. Many lost their job and many lost their way of income. People were drowned in debt. Many companies had to face a great loss. There was a sudden rise in the debt in 2020. Borrowing was further enabled and encouraged since the financial crisis.
Reduced sales businesses worldwide
Covid-19 has hit sales and production industries hardest. Production and sales are affected the most whereas IT and finance are the least affected. IT helps businesses to make their sales happen. IT continued to deploy the tools that sales engage remotely with customers but sales happen over the person-to-person meetings. If there is transportation, no people for delivery sales can simply not happen. A virtual tool will not help in this case. High costs projects involve people ad when people are not available then the company has to face huge losses.
Due to lockdown no one purchased or sold any product. Everybody avoided online/offline shopping and also there was no way of transportation. Companies started facing huge losses hence resulting in a recession of workers. This impacted badly on the economy worldwide.
Fall in stock market
There was a huge fall in the stock markets. Many investors were worried about their investments in the stock market. There was a stock market crash due to an unpredictable pandemic. A significant decline in the economy was visible in GDP. Not just one country but worldwide most of the countries were struck with the lowest GDP, employment, sales, and industrial productions. The stock market crashed and people became cashless.
Many companies lost their investors. Even after the lockdown, when everything is going back to normal many people fear to invest again as they had faced a great loss.
State of bankruptcy
It has been claimed that in 2020 many companies were bankrupt. Businesses and companies were standstill for a long time. During lockdown number of bankruptcies showed a sharp increase as a consequence of the pandemic. Many companies shut down due to withdrawal or settlement.
Covid-19 had an adverse effect on everybody. This deadly pandemic badly impacted all nations of the globe. To control the virus, the government of every country imposed a lockdown. Lockdown had both positive and negative impacts. It positively impacted nature, the environment, and controlled viruses but it negatively impacted the economies of the country. Lockdown was not easy on anybody.
Things are slowly going back to normal now and people are healing from their losses. The government of all nations tried their best to save their nations and are still working to lift up the economy and help citizens by repaying their loss.