Do you think the economy will be any better after the pacy novel corona virus is battled off? The pandemic has been one of worst threats to the entire human civilization, ensuing in adverse impacts on social, economic and political front.
The preventive measures adopted by practically all the affected countries in the form of lockdown, ban on social gathering which are undoubtedly quintessential to ameliorate rapid fatalities of the disease, on the other side, can be the critical factors for economic stagnancy.
The close down or the freeze of financial markets, businesses, corporate offices, freezing tourism activities both local and foreign, restrictions on all international travel and event can lead to irregular income flows, reduction in consumption demands, degrading investment in almost all economics sectors are the major crucial exponent to spike down economic potency.
These show that demand will fall in the various countries. Production and employment will negatively be affected due to the dread fall of domestic consumer demand.
The drop in consumer demand may have a lower effect in manufacturing, hence, the reduction in production and lay off staff mechanism will be the aftermath, as solution to curtail fiscal deficit in various businesses.
The world Bank, IMF, African Development Bank, EU, USA which have all been supportive to combating against the virus. It is worth mentioning that the world Bank has set aside US$12 billion, the IMF US$50billion including international NGOs. But its bigger task rest on every individual victim nations to adopt pragmatic approach to overcome the crisis.
However, in the likes of Ghana, private charities rise sharply in this situation to offer assistance to the vulnerable and the marginalize citizens in societies supplying them with essential items such as food, water and other direct assistance.
Some in cash to the affected people, whereas the government also devised an immediate relief actions by distributing food in the various deprived communities to assist in the lockdown protocol, and the help to ease the burden on their neck by supporting the foot of utility bills for every average Ghanaian for three months, simply because economic activities have been frozen.
Arguably, these charities and donations and reliefs noted in this torrid were informed by pity in the peak stage of the crises,which in reality, these will be transient in appearance after these times.
As indicated erstwhile, economic hibernation will negatively affect businesses in Ghana, inter alia to a fall in production due to the dramatic drop in demand. more especially the the non essential consumer goods and services which are alternatives to human consumption culture will significantly decline.
This will force reduction as manufacturing mechanism to streamline production hence large workers will face redundancy or delay in salary takings or probably not. Therefore hardship is potentially inevitable to be escaped.
In the early 2015, Ghana beseeched the IMF for US $918 million loan to help stabilize the economy, when the economy was hampered by widening current account and account deficit, intractable inflation and depreciating currency, this movement soar the woes of unemployment as part of the the measures to readjust the economy into resilience.
This period brought grievous hardship into the homes of the average Ghanaian. The economic downturns will impact the future prospects of all family members. Ghana’s economy is likely so face severe downturn, after the pandemic, which will be perilous and poignantly affect the average Ghanaian. So who then can abscond and muddle through the ripple effect and this prospective hardship.
What may bring relief and to who, are the people who will cut unnecessary expenditure, and adapt to measureless saving culture more especially at this time where new clothes and other expensive apparels and that brand new cars are not needed. Having fun, funerals and others, which might have caused too much expenditure are frozen.
COVID-19 pandemic and the anticipated disappearance, as its stands has not been much convincing, it may sojourn around us for sometime before its disappearance, because of the inability to ascertain and apply resolute and perhaps accurate vaccines and ways to get rid of it since its outbreak, yet, where to pay for and sleep and what to eat, still hold primacy in our daily expenditure with family, health still remains a paramount factor as part of plans.
Though there is being a quantum leap on the number of people who have recovered from the pandemic in Ghana, but has never be the panacea to fully recuperate businesses and allow normalcy to take place.
In effect, as much as doctors and expertise who are on the major front lines to combating the virus, have not been much auspicious and predictive about the disappearance of the deadly novel pandemic, it is therefore prudent to measure daily expenditure as an average Ghanaian, adapt to ways through which expenditure on non essential commodities can be minimized and save the rest which you will apparently subsist on after the crisis, before things restore to normal.