Economic ripple effect is may be defined as a series of consequential effects arising from application of external force on the economy at some point. The terms are derived from the way water behaves in case an object is dropped at one point.
In the recent past we have witnessed many affected and non-affected countries taking precautionary measures as advised by the World Health Organization (WHO) and the relevant governments arms to protect their citizens against the novel Corona Virus Disease 2019 (COVID-19). These measures have ranged from social distancing, avoiding close contacts, staying at home and restricted movements to total lock-down of country’s non essential sectors just in efforts to ensure that the fatalities of this fast spreading disease are mitigated. It is therefore evident that all these measures taken by individual countries are at the expense of their economic growths and that of the world at large. According to World Economic Outlook, the world economy was projected to grow from 2.9 percent in 2019 to 3.3 percent in 2020 which is a downward revision of 0.1 on both). The pandemic is expected to slow the global economic growth by up to 3 percent and the same is expected to grow by 2021 when things normalizes as a result of the policies that are to be implemented post COVID-19.
If a dependable solution is not found in the near future, a wide range of negative effects such as loss of jobs, inflation, demoralized investments interest, among others are likely to be on the rise. With curtailed movement of people from one nation to another most airline operators are revising their projected incomes and cautioning of taking severe actions such as forced unpaid leave for their staff and to some extent even downsizing their workforce to be to endure these hard times. Companies in other sectors have resorted to asking their staff to work from home if they are in a position to do so.
TO BE CONTINUED….