There is lot of uncertainity due to spread of Covid-19 virus all over the globe. No one had an idea that this virus would spread at such speed effecting more than 300,000 people all over the world. Covid-19 resulted in death of around 13,000 people.
Researchers predict that this virus would affect 60% of population and killing millions.
But it’s impact on economy is unprecedented. Many predicts that corona shock is more serious than The Great Depression of 2008.
According to the UNCTAD, the pandemic could cost the global economy between $1 tn and $2 tn in 2020 (source). China shows that the only way to control this virus spread is social distancing and shutdown, whether voluntary or enforced.
If we look at the employment rate of February 20 it was pretty much strong. But we cannot compare this situation with the recession of 2001 and 2008 because we are giving the the economy for human kind.
In China’s case, lawmakers implemented strict shutdown, both at the national and local level. As we know 1 out of 3 product is manufactured in China. Shutdown will definitely put the world economy in recession, but question is, how much?.
The major impact of shutdown will be on Airline sector, Tourism and Hospitality sector. They cannot offer services online as they need physical presence. Due to which they cannot make their employees work from home. That would result in unemployment in these sector.
Robert Kiyosaki is the author of The Rich Dad and Poor Dad and American businessman. He was interviewed on London Real hosted by Brian Rose, Robert believes that this the great opportunity we ever had in history.
From an economic point, he says that the economy will bounce back but we should take care of our health at priority.
Robert had one open-heart surgery, diabetes and obesity so he is more focused on mental, spiritual, emotional and physical health.
According to him, digital companies which have involved themselves to the online platform may not have much impact. But the industrial companies may see the downside risk. He also tweeted that feds are printing trillions of fake money for the stimulus package to bail out the corporates.