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2020

How to Fight Economic Effect of Coronavirus?

How to Fight Economic Effect of Coronavirus 

A year ago no one knew about Corona. Today, there is hardly anyone who does not know about it. Knowing is one thing. Countries and people face a bleak future in the post Corona devastated world. Apart from social distancing this malignant virus is nuking economics of countries in a way that has never happened before, not even during world wars. Life is grinding down to an excruciatingly painful slowdown. Stock markets have crashed to abysmal lows and the end is not in sight. Severe restriction on movement drastically affects daily wage earners. The economic effect of coronavirus is projected to have a ripple effect in the time to come. UNCTAD estimates the world as a whole will suffer a loss of over $ 1 trillion and that is a modest estimate. Even cryptocurrencies are bottoming out.

Coronary recession

The effect of corona is to send the world’s economy into a tailspin. The effects of coronary recession are already here. Growth slows down to 2% and fear of infection forces companies to ask workers to keep away or workers do it on their own. Already GoAir has asked employees to go on unpaid leave. Indigo waived extra hour benefits and cut salary by 25%. Other industries are bound to follow suit in the wake of economic downturn.

The economic effect of corona virus will last for some time even after China, the epicenter of the pandemic, has declared that not a single new case has come to light. However, China is a major supplier of raw materials and finished products to the world. Closure of production there has a domino effect on businesses across the world. Even logistics is affected further aiding slowdown in manufacturing and sales. China’s growth is said to fall to 3.5% from a healthy 6% in the last quarter of 2019. Just like thermal runaway happens in electronic devices we can see economic runaway.

Economies the world over are disrupted by Corona and this leads to a decline in demand. Production has declined in China and reduced demand could see further decline. What this means is that there will be large scale unemployment and shortages. Cash flows are disrupted and call for a set of new finance management policies for businesses, people and the government that faces prospects of higher non-performing assets placing a load on banking and public health spending affecting its budget. Countries may be affected but they will recover. Meanwhile, it is individuals who face the greatest inconvenience due to this unexpected and unforeseen pandemic.

Employees the greatest affected

Restaurants and cinemas have closed down. All sports events are being cancelled. Public transport is being shut down. Travel and tourism have been badly hit. Schools are closed. Employers discourage employees from attending work and employees stay away. There is restriction on free movement. People are advised to stay indoors. Cities wear a deserted look. Businesses suffer in this scenario but will eventually recover. However, it is employees who must attend work who will be the most affected by the Corona shutdown. Production is something that cannot be done remotely. Bus drivers, taxi drivers and similar workers must attend work or face wage loss. No one in these areas ever dreamed of this situation when they would have no income. Those who can work from home are marginally better off. At least they can continue working from home using their computers and receive income.

Are you prepared for this type of lockdown situation? You could have pursued a course in IT or any other area that would have permitted you to work from home as an employee or an independent professional. One short term course you can consider is financial management course. Compared to extended IT courses, this course gives you the chance to work in office environments and, if that is not possible, you can work from home too as an employee or an independent consultant.

How finance management course helps

One cannot possibly foresee developments that could affect employment. Those who can work from home are plain lucky in cases like this. The financial management course gives you skills you can use to work from home even as the outside world grinds down to a halt. Your work continues. Your income continues. In particular, the finance management course will be helpful in different ways.

Economic downturn affects businesses of all types and sizes. Finance management is crucial to help them weather the downslide. They must know where they can control costs to keep down expenditure in the face of diminished revenues. At the same time, they must be able to find ways to improve revenue growth. Your skill as a finance expert will be in demand.

The government may announce tax reliefs and loans on easy terms in an effort to help businesses get back on their feet. You pursue the financial management course and you get latest updates on government policies announced for the economic effect of coronavirus.

It is also equally likely that the government, whose revenues are affected by the economic slowdown, may impose additional taxes and surcharges to GST and income tax to gather money for its various activities. You should be aware of such impositions and how they are likely to affect revenues of the companies you work for or to whom you provide financial consultancy services.

Then there are individuals who may have invested in shares, stocks, real estate and other areas. Their returns are likely to dwindle down to next to nothing and, like business enterprises, they too will be looking for financial guidance to help them restructure investments to generate revenues.

Pandemics may occur at any time. A panic response is not likely to get you anywhere. Even if you have savings you will find that these diminish fast when goods become expensive and your income stops. The best way to be prepared is to find ways that will keep you employed regardless of the external situation. The financial management course is one such tool that will see you through tough times.

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