COVID ECONOMY

Updated: Oct 29, 2020

What Happens Next?


From doing our usual everyday routine of going to work, dinner with friends and family and even pamper time during the weekends - to dead silent cities covered in fear and confusion as to how we are going to get through the crisis.


The coronavirus started from a market in Wuhan, China and slowly struck its neighbouring cities and abroad, forcing governments to implement strict regulations to control the virus. It came from a bat which eventually transferred to a human and quickly spread to others. As the virus was detected and more and more people getting sick, the People’s Republic of China closed down the city of Wuhan and started to build hospitals to contain the virus and house a large number of beds for future and those who are already infected.


The race to find a cure soon started, with more than 150 countries coming together by joining the COVAX Facility, a mechanism designed to guarantee rapid access to COVID-19 vaccines globally. “COVAX is the only truly global solution to the COVID-19 pandemic,” said Dr Seth Berkley, CEO of Gavi, the Vaccine Alliance. The COVAX’s estimates and hopes to deliver 2 billion doses of safe and regulatory approved vaccines by the end of 2021.


“The COVID-19 pandemic, like every health crisis, also presents us with opportunities,” said Dr Soumya Swaminathan, WHO Chief Scientist. “A vaccine that is affordable and accessible to all will help us address systemic health inequalities. We need all countries to support COVAX to achieve this goal and bring an end to the acute phase of the pandemic.”


Lockdown woes


With the world in lockdown, analysts have predicted the global economy to shrink by 5.2% this year. As countries holding their budget to tend to the needs of the community such as healthcare to try and solve the pandemic, many businesses have closed down resulting in the surge of unemployment rates creating even more problems.


According to the National Statistics Office, The UK gross domestic product (GDP) has fallen by a record high of 20.4% between April and June this year as a result of the pandemic. However, as the UK eases the lockdown restrictions with non-essential shops opening up again, the GDP has already increased by 8.7% for the month of June.


As the virus spread rapidly, many of us began to stock-up and panic buy food such as eggs, flour, rice and also toiletries! Many people were even withdrawing cash from the banks just to feel safe in case of a recession. Some of us who were on furlough tried to learn new skills while others who lost their jobs started to see online selling as a way to earn a living.


As there are still a large number of people especially those at risk and are shielding from COVID-19 are relying mostly on the online market. There is an increasing demand for online services and companies are trying their best to leverage the situation. According to the latest Bank of England’s Agents’ Summary of Business Conditions - 2020 Q2, spending on consumer services through online sales of some products were strong. For example, face masks and hand sanitisers were one of the most sought after goods from the previous months!


The online market has seen its highest activity and the demand for online market is significantly increasing as evidenced by Jeff Bezos’ Amazon, whose consolidated revenue for the second quarter of 2020 totalling at $88.91 billion which is an increase of 40.2% from $63.40 billion last year.


Online selling is the future of retail. No longer are the days when many people shop in stores. As technological advancements continue to grow, so are people becoming more updated and busier in retrospect to having less technology and the online market is readily accessible and available for anything you need with just a click of a button.

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