Economy

Coronavirus impact on the economy

Rakesh Kumar Rakesh Kumar @Aryasblog Mar 24, 2020, 17:20 IST

No doubt so far identified cases are about 500 and 10 people have already died. Several measures like lock down amounting to curfew are being imposed but these are not without serious economic impact. Whether the lock down which is containing the spread of the virus or asymptomatic cases are still to be recognised but number of positive cases are still very small. The movement of the people still continuing as the work places are shut down and each one of them would like to reach at their own place of living permanently. Everyday the cases detected are being matched with the lockdown done in the districts. In Maharashtra highest number of cases are detected. As the cases keep increasing and fourteen days to be counted from there to quarantine the lock down is likely to continue. It appears that economic activity would remain hartal till July. It is better to keep lockdown till July in case the disease is not to be allowed to be spread significantly. In regard to the survival with food is concerned there is sufficient food grain which is available. The governments are also assuring some help to casual workers and the regular workers presuming cannot be removed from the payroll, but denying the cash losses to the firms is not a correct thinking. Somehow these firms would have to be accommodated by the banks and tax authorities. The market has already shown that it is losing the strength. The debt condition is likely to be further worsen and once the normalcy return banks already under stress would find difficult to issue credit. The chances of reemployment will also be affected.

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