Coronavirus: Are We Ready for a Global Recession?

Globally, the COVID-19 death toll crossed the 5,300 mark and with over 1.42 lakh people infected, the global economy is facing a sudden halt. A set of industries has been impacted by the spread of the virus and analysts across the world fear that the global economy may turn into a recession.

Authorities around the world are reporting new cases every day, hence it is unknown how long the virus will remain potent. Uncertainty is one of the factors that make businesses vulnerable and the vitality, endurance and longevity. A global recession is now certain according to Rabobank and it has predicted global GDP growth to be 1.6 per cent, a figure which was 2.9 per cent last year.

UN’s United Nations Conference on Trade and Development (UNCTAD) claims that the COVID-19 outbreak costs the global economy up to $2 trillion this year and the pandemic can cause a recession. Avoiding work, fitness, education and entertainment, hence engaging less with the outer world will lead to less economic activity and businesses will face the trouble to supply the products, and most factories to shut down. Along with this, a large number of workforces have to be quarantined as well.

As small and medium scale businesses are shutting down day by day, the cancellations and postponements of the public activities will bring down the consumer spending across countries. The supply side, public health emergency and the oil price shock are impacting the global economy.

“We don't want to wait for an emergency to take place. We are after all in the insurance business. We should have, and we do have, a proactive approach to health concerns. We believe the remote working model can be as efficient as working from office if we use the right tools. And since we can offer this option for our employees, we should, now all calls landing on Acko's toll-free number are smoothly transferred to employees who receive the calls on their mobiles. Sales representatives can click to call customers or prospects from their systems. The call automatically dials out to the employee's mobile phone on one end and the customer/prospect on the other. The transfer is very smooth, and we're proud to say that we're able to manage business-as-usual while taking all precautions to ensure our employees' safety," states Yugansh Goyal, Associate Director, Acko General Insurance.

However, the sales of medical supplies, hand sanitizers, soaps, and essentials, will rise evidently as people are stocking them up at their homes. After the Severe Acute Respiratory Syndrome (SARS) epidemic in China in 2003, most of them prefer online shopping and hence e-commerce major Alibaba’s fortunes rose after this. Similarly, online learning will get a boost as schools, colleges are temporarily down.

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