The Economy After the Coronavirus Pandemic is Over

in hive-175254 •  2 months ago 

Economic analyst have been forecasting a lot about a recession in the world even before the advent of the novel Coronavirus but with the coronavirus pandemic and so many nation going on standstill or hibernation mode, it is visible that there will be a compulsory economic crash which might affect a lot of companies. Countries have been printing money from thin air just to fight the coronavirus, so many central banks have been producing money for the pandemic so as to curtail and find a cure. It is inevitable that for some time, there will be an economic meltdown, you do not expect the stock markets to rise all of a sudden when a lot of companies have lost almost 90% of the company share value (well, I can’t really predict the same for cryptocurrency, since a rise in Bitcoin will apparently cause a rise in altcoins). In all this, there will be people and companies that will stand up tall and a lot of people will take advantage of this period to get their businesses running.

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Just like the recession in the 2000s which involved the dotcom bubble, the European sovereign debt crisis, and other economic crises, a lot of people will make a difference after this black crash in period in the market coupled with the socio-economic impact of the 2019-2020 coronavirus pandemic fall. Just like a lot of companies struggled through the dotcom bubble to make it happen so many companies will be coming up and they might be focusing more on technology, food and health.

What Will Happen After This Long Break

Temporary or Permanent layoff

I do not think we expect a miracle from a company that just lost over 70%of the shares value to employ more staffs. There will be lots of layoffs as companies will be trying to recover from the downtimes and consumers will be looking at making their bank saving heavy again should in case of another downtime. With this, we should be certain that paying salaries and wages will be a problem. A lot of companies could explore working from home with lesser pay but same delivery thereby reducing cost for both their staffs and the company.

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Business Crashes

Do not be surprised but the possibility that a lot of businesses will crash after this is very high. Travelling will not be something for a lot of people and it will take good marketing and standard for airline companies to survive this period. A lot of companies will be taxed by the government so as to recover funds spent during this pandemic. So many people will be skeptical about the stock market and will be waiting for a whale to buy into the market before they start to buy which might not happen anytime soon leading to a lot of companies to declare bankruptcy.

How the Government Can Save the Day

First, fiscal measure will be really needed to save companies and banks from bankruptcy, also policies that will cover various forms of tax relief should be considered as well as policies to allow businesses borrow if necessary.

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Sometimes i think about the result of this pandemic and what it will make our world look like and it looks really scary when compared with the pandemic itself.

In order to prevent the reduce the down time that will occur after the pandemic, it is essential that the government steps in and companies also begin to accept the idea of remote working.

Very detailed analysis here. Indeed, the Covid-19 pandemic is a big blow to businesses across the globe. Like you said, sound fiscal policies will be needed to revamp the frail economy that would result in the aftermath of the outbreak. Great job!

Thanks gandhibaba, a sound fiscal policy will be greatly required.

Life after the COVID-19 has kept a lot of people thinking and worried. The government will have to go down on taxes and provide readily available loans to companies that need them but will they? Rather they will want to grow the nations reserve and pay back debts immediately.

A lot of countries have been able to bring out money from no where, so it should also be possible for tax to be reduced and loans should also be offered to business owners.

@ajewa , Great analysis. Every country scared for this recession that is up coming because of corona virus. The situation is going to become a more scary. Hope for the best.

We greatly hope for the best, stay safe.

I think the solution is for companies to start working remotely, from home, and consider a new business model, and I see all this as a very good opportunity to generate new types of business. Companies that adapt to this new remote working model, forecast that they will have enormous profits

The idea of remote working will help a lot, I even feel that certain companies will like to stick with the idea of remote working over time.

The economy of the world would be down for a long time after this. The world will need more than talks to get out of a recession after COVID-19.

We can only hope that things get stabilized after the virus ends.

Dear @ajewa

And again, C-19. Very HOT topic, isn't it?

Every day I wake up and go to bed thinking about consequences of this virus. On our health, social behaviours, economy and climate change (which will occur sooner or later).

it is visible that there will be a compulsory economic crash which might affect a lot of companies

You nailed it. And those companies and economies which are build on debt will most likely suffer the most.

you do not expect the stock markets to rise all of a sudden when a lot of companies have lost almost 90% of the company share value
The problem is that financial economy seem to be very disconnected from real economy :/ How sick is that, right?

How the Government Can Save the Day
The only solution is to print more money and create more debt, which would allow individuals and businesses to survive within next few months.
This will obviously cause inflation in the future. But perhaps inflaction in 1-2 years time is a better solution than closing down businesses, firing people etc.
Many countries chosed that option - however it's very important to see how those money will be redistributed within economy.

ps. Lately I've realized that sooner than later "talking online" about coronavirus may get us in trouble. Russia already introduced heavy penalties for spreading panic/fear or "fake news" related to covid-19.
I strongly believe that EU and us will follow very soon. so I will personally limit myself to reading about it, but I really comment or post anything related to this topic. Just in case.

Upvoted already :)
Cheers, Piotr