- April 1, 2020
- Posted by: Catch Bangladesh Official
- Category: Business plans, Competitive research, Economics, International
A recently graduated student finds himself in an awkward situation, in confusion as he struggles to come up with an idea or a plan to move forward. The reason behind his struggle is that, the world is moving forward so fast that he won’t be able to run and catch a glimpse of success. On the other hand, A well-established business-man who broke all the barriers in his road to success, who faced all the challenges and whose establishment speaks for himself, is also facing difficulty running his business. Both them are now facing a scenario about which none have ever dreamt of. The recent pandemic caused by deadly Corona virus will not only change the society but also alter the course of World Economy. It will reshape the economy in such a way that it will cause financial crisis to likes of that well established business-man as well as create thousand opportunities to likes of that freshly graduate. Here in this blog, I am going to focus on how a pandemic can alter or reshape economy for better and worse.
At first, let’s take a look on the current situation of world economy, price of oil went down by 6% in US, which is lowest in last 18 years, almost every restaurant in most of the affected countries are counting losses as they are bound to close, factories got shut and production is off, other businesses like home appliances retailers, electronics selling stores are being shut down to flatten the curve. To be exact from small to big almost all the businesses are being crushed except grocery shops and delivery services. The businesses with most human contacts are counting losses, whereas the businesses with minimal human contact are booming.
It is being predicted by many economists that the biggest and wealthiest companies are going to lose a great deal of their market share and loosing employees. The financial stability of local retailers and dinning’s (restaurants, resorts, hotels) will be destroyed. The tourism sector will encounter their record-breaking downfall, due to ban on flying and quarantine situation. The Airline companies will be facing challenges to generate profit as almost every airport of affected countries is going to remain close for a long period.
US economy also known as the ever-expanding economy is being threatened to come to an end as the unemployment stood lowest in half-century. The drivers at the port are being laid off as the shipment is closed. To understand the seriousness of the situation we can see that the Port of Los Angeles, the busiest port in the United States, has become a “ghost town”. Four workers said, “The port has never been this quiet, not even during the Great Recession.” The employees of chain restaurants are losing their jobs. The garment sectors in Bangladesh reported that they lost contracts worth of 3 billion. Most of the Garment-workers are not getting wages as the Garment owners do not have enough money to pay. 1 million out of more than 4 million garment workers in Bangladesh lost their jobs or have been furloughed because of cancellations of order and buyer’s disability to pay for canceled shipments.
We all can assume, how each and every above-mentioned scenario can turn the world economy upside down. The after effect of this pandemic could be horror for poorer countries with limited resources and means of recovery, and for refugees and people in conflict zones as it would be difficult to rebuilt a broken economy which is just seeing the light of peak.
On the contrary, there is a sector which is booming and gaining its market share faster than ever, that is e-Commerce or Cloud base services. E-commerce sites like Alibaba and Amazon are going through their success phase. These services have recently got a market that has huge demand to meet and they are almost the only providers. Amazon is offering 100,000 new jobs for warehouse workers and drivers. Meanwhile, another chain “Wal-mart” is recruiting 150,000 employees to keep up with overwhelming demand. At the same time 7-Eleven is hiring 20,000 people to deal with what executives refer to as an “unprecedented crisis.” Besides these giants, local e-commerce sites from different has also gained popularity recently. In some countries, where these giants cannot reach the local companies are playing monopoly.
Also, the cloud-based delivery services are having their rush to meet the recently created demand. The food delivery companies like Food-Panda, Zomato, Uber-Eats, have encountered newly grown demand. And to meet the markets these companies are also recruiting.
As the nations, worldwide are maintaining quarantine, streaming services like Netflix, Youtube are generating tons of profit. Online video streaming platforms have discovered a huge number of new consumers.
After the deadly bites of Corona, those who survive will face a completely new world, the different sectors of world economy will find new heights or lows. Analysts predict, this pandemic induced situation will accelerate the changes of consumer habits which takes years to alter. It will also enforce people to grow new habits which will stick and will also some of our previous habits. Some economists think of it as an opportunity to rebuilt the economy from ground for greater good. Analysts also presume that, this scenario will enforce this world to innovate new sectors and solutions to latest problems.
Lastly, A pandemic like this one (Covid-19 outbreak) holds the power to alter the course of human history and also world economy. That recently graduated boy and the established Business, both will face new challenges and opportunities. This pandemic might not be all crushing, it can also be all giving as well. We all have to prepare, to face the economic disaster we may encounter and also to grab all the new possibilities we may get.
by Samiur Rahman