COVID-19: An Impact Assessment of the Global Pandemic on Economic Development

The Covid-19 pandemic has shaken everyone globally, disrupting the balance on the supply and demand chain in the interlinked world economy.

Many organizations such as the United Nations, the World Health Organization, and the United Nations Development Program have come together, voicing deep concerns for the state of the nationwide economic growth, which has continued to plummet further down as the pandemic goes on.

Why Are Developing Economies Highly Impacted?

Not only has Covid raised alarming conditions on the healthcare crisis, but it has also spread its influence to other financial sectors and global markets in underdeveloped states. Areas that are still undergoing economic development do not have adequate facilities to counter the pandemic's effects as efficiently as most developed economies can.

Moreover, there is very little diversity in developing economies. According to Tomasz Michalski, HEC Paris professor of decision science and economics, he had stated that developing economies cannot stand on their own two feet just yet as they are heavily reliant on other industries-resourcing, tourism, and manufacturing to name a few. They were already struggling to generate revenue to meet the volatile demand of the market. With the pandemic closing off supply chains, manufacturing companies are heavily suffering from the blow it has been hit with.

On a global scale, we have witnessed a significant reduction in productivity, business closures, lives lost, disruption of trade, and the complete depletion of the tourist industry. With the lockdown imposed, no one is making use of travel services in and out of states- plus materials and other requirements cannot be transported to several other industries, causing a productivity halt in the entire economic sector.

There has been an extensive rise in unemployment in the job sector that has bought about a huge blow to the manufacturing industry. Many individuals have been forced to stay indoors during the lockdown, making them unable to work or receive enough wages to maintain their livelihood. Moreover, many employees have already been exposed to the virus, causing them to leave work and get themselves treated.

Another addition to the reasons why unemployment is on the rise is that many underdeveloped businesses have increased their product or service prices to meet the market demand. With the crisis already imposing harsh implications, many families are not able to buy necessities anymore. And with the lack of revenue being generated, these business are forced to close permanently.

Government and leading figures are trying to diminish the current pandemic state by reaching the root of the problem- which is to focus more on strengthening the healthcare industry, bringing together economic development thought leaders to brainstorm ideas to contain the number of the corona virus cases that are currently showing no signs of depleting.

One of the nation's most accomplished economic development thought leaders, Rick L Weddle, has taken part in improving the state of the economy. He has accomplished many economic goals to perfection, and he strives to do the same to reform the grim state of the current economic development. With years of experience and successes to serve as his blueprint, he is one of the many dominant leaders out there who has set his eyes on changing the economic sector's fate for the better.