Posted: February 16th, 2022
Effects of covid-19 on the economy
A pandemic stricken country may result in depression of the economy.Covid-19 has impacted various country’s economy instance; close down of businesses, reduced tourism and, even raising the living standards of individuals.
Some businesses have been hit negatively by the outbreak of covid-19. It has limited the business access hours by introducing curfew during night hours when most people who are busy during the day find time to access the stalls during the night hours (Atalan, A.2020. Close down of some businesses has reduced the amount of taxes the government gets to run its economy, increasing government spending. To avoid continued close down of existing businesses before covid-19 erupted, the government should reduce the amount of capital on existing businesses.
Covid-19 has affected the tourism sector since the tourism sector has limited access of tourists to national parks and such places (Mariolis, T). This has reduced the amount of foreign exchange since it’s majorly earned through foreign exchange. To curb this, the government has introduced new ways to help curb the spread like wearing of face masks, hand sanitization and, social distancing hence there’s a ray of hope in the tourism sector.
People’s cost of living has increased due to the breakout of Covid-19 hence increased strain in satisfying their wants.Covid-19 has been accompanied by increased costs that were never in existence before the breakout (Atalan,A.2020). For instance, costs for face masks, hand sanitizers and, as well increased medical costs which have been caused due to many cased of covid-19 and limited medical facilities like life support machines in ICU. This can be curbed by foreign aid to developing countries.
Atalan, A. (2020). Is the lockdown essential to prevent the COVID-19 pandemic? Effects on psychology, environment, and economy-perspective. Annals of medicine and surgery, 56, 38-42.
Mariolis, T., Rodousakis, N., & Soklis, G. (2021). The COVID-19 multiplier effects of tourism on the Greek economy. Tourism Economics, 27(8), 1848-1855.
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