WORST IS YET TO COME

As the COVID19 has been declared Pandemic by the World Health Organization, till now 7074 deaths have been confirmed out of 179073 cases worldwide and are still increased at an unpredicted rate. Most of the stock markets have crashed, the NASDAQ composite ended down 12.3%, S&P 500 finished down nearly 12%, Its worst day since 1987. SENSEX plunges 1800 points NIFTY below 9500. Selling was so extreme that the trading on the New York Stock exchange was halted for 15 minutes. It was the third time in history such a circuit breaker was triggered.

On the other side, organizations are facing several challenges, the economic policymakers are deploying their crisis policies with the worst yet to come. Yes, the priority is to get the public health response right and the only way is to limit both human and economic costs. But the economic threat posed by COVID 19 is extremely serious and the response needs to be correct the result of which will be a deep economic crisis around the globe. A global recession looks inevitable and how deep and long it will be that’s unimaginable and much will depend on how deep and how long the health crisis itself proves

However, as we cannot stop the global recession which is inevitable but can minimize the damage of which the initial response should be to stop spreading the virus further by recognizing the social distance gathering both voluntary as well as mandated from the governments, which also means economic is going to be large. Funding from public health systems to respond most respectively is the need of an hour to provide financial relief to the affected households and businesses to cope through the crisis and prevent businesses from going bankrupt and stop massive bank loans from hitting banking systems. These costs can only be handled via government budgets, the markets cannot handle this pressure.

Besides this, the most important is a dire need for international cooperation. But so far international coordination between governments is extremely lacking. Strong cooperation between the international bodies is desperately needed but unfortunately, today’s world is busy in Geopolitics, crude populism, zero-sum politics, and partisan politics. The virus, of course, is not hampered by such problems the cannot afford it either

STAY SAFE STAY HOME SAVE THE WORLD

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