THE GLOBAL PANDEMIC- COVID 19

The Economic Impact

It is believed that this famous and annihilating disease was brought upon the world by the Chinese and, has indeed caused a major lockdown in the world affecting a great deal the economic system of countries involved in the pandemic outbreak. The virus which is spreading like wildfire, has initiated the shutdown of many businesses, companies and organizations worldwide thereby disrupting the generation of income and resources that would have been used to fight this disease. In Nigeria for instance, all business transactions with China; our number one infrastructure financier and trading partner, has been put on hold until this crisis is over. This is, of course, would have been so much of a great news but then, because of our total dependence on the importation of goods and resources from China, it is expected that in no time Nigeria would enter a state of total lack.  Considering the uncertainties, such as how long the outbreak would last, it is likely that recession would reveal its claws soon if businesses and people respond to the measures laid out by the government in curbing this disease which is to ‘stay at home’ and ‘isolate yourself’.

With all the bustle and tussle on this pandemic outbreak, it is also expected that demand and supply would increase maximally as the degree of output put into the system is lower than the input.

Now, the scenes predicted are playing out quite authentically...

There's been a massive shut down in the acquirement of basic needs that people need to survive. With everything on sale spiking up to an exaggerated level, and also their unavailability factor, it is evident that 'shit is real already'. 

Considering that the informal sector contributes about 41% of Nigerian economic output, a great population cannot be productive from the confinement of their homes. Therefore, a shutdown of the movement of the masses will only lead to a massive decline in economic output, income, and a widespread drop in spending.
In countries like Italy and the United States Of America, a drastic economic change has occurred as the number of confirmed cases are consequentially increasing. It is likely that in no time they'd run out of resources to enable them to contain and fight this virus.

Recession? yes!!
It is definitely inevitable that the pandemic could lead to a recession which includes a decline in component measures of economic activity such as consumption, investment, government spending, and net export activity. There is even a high possibility that after all this is over, many countries would still battle with recession, as this outbreak has evolved a stain in the economy worldwide. It is so sad what this virus has brought upon the world. In Italy for example, many of their patients are treated on the road as the state has run out of beds and necessary equipments to treat their infected patients. The unavailability and shortage of medical personnel makes it more difficult for the health authorities to manage risks and treat many people all at one time.
It is no longer news that the Nigerian economy was barely surviving before this outbreak; nevertheless, there is a bigger chance and possibility that they won't survive this crisis even as soon as this is all over. Many organizations too would be put out of business soon after all this is bygone. Daily the infected patients are increasing with great magnitude and it is without a doubt that only a miracle would save us from the impending disaster that this virus has brought upon us.

#stayhome 


Asiegbu Nita

8/4/20