We’re living through truly unprecedented times. At the start of 2020, hardly anyone could have been prepared for the way that coronavirus and Covid-19 would impact the entire world. Within just a few months, it has spread globally, killing hundreds of thousands of people and forcing the rest of the world into lockdown situations. Governments in multiple countries are limiting movement across their borders and encouraging all citizens to stay home unless they need to leave for necessities, such as food or medication. This is taking a huge toll – in terms of people, health and happiness. But this isn’t where coronavirus’ impact ends. It is also having a major impact on the world economy. This can be greatly concerning. So, let’s take a moment to see just how this pandemic is affecting economies around the world.
Individuals and Companies
Many individuals are finding themselves unable to work or completely out of work. This isn’t just those who have contracted coronavirus. Government guidelines surrounding social isolation, social distancing and “sheltering in place” mean that many of us who are not working key roles are no longer able to head into our places of work. If you can work from home, great. But if not, you may find yourself struggling. Seeing as people have less money to spend, more people are reluctant to spend on anything non-essential. Those with money to spend are also reluctant, wanting to save their money in case they end up joining the ranks of those who have already lost their jobs. The consequence? Businesses who are able to keep running are struggling to make sales and are suffering themselves. The government has attempted to tackle this issue by issuing stimulus checks to eligible individuals. These checks are worth up to $1200. It’s a good idea to check whether you will be receiving a check. Keep an eye on government announcements and read reliable sources to get the answers to questions like “will senior citizens get stimulus checks?” Also be aware of scams. There are a huge number of online scammers looking to prey on and exploit concerned people. Never provide details in email correspondence and do not make any payments through email links. Calls should be ignored too.
The FTSE, Dow Jones Industrial Average and the Nikkei have all experienced huge drops since the spread of coronavirus. In fact, the Dow Jones and FTSE saw their biggest quarterly drops since 1987 in this quarter. Given everything that’s going on, this isn’t all too surprising. Investors are growing concerned that coronavirus could destroy economic growth, causing a huge decline in shares around the world. For the average person, this can also have the effect of reducing the value of ISAs and pensions. Hopefully, government action will be able to combat this.
As you can see, the forecast is pretty bleak when it comes to the economy right now. Coronavirus has caused it a huge hit and it may be difficult to recover from. However, hopefully we will soon develop a vaccine for the virus and issues can subside!