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Indian economy marks its recession

It is no surprise that the pandemic of Covid-19 impacted every economy in the world regardless of its size. India being one of the largest global economies shattered terribly more than any other large economies and rightfully so, the country implemented the lockdown restrictions later in March 2020, way late than all other European and Asian countries.

Indian economy marks its recession #infographic

India’s GDP loss for the second quarter of 2020

The COVID-19 pandemic has not only collapsed India’s economy, but the entire world’s economy has suffered drastic losses. However, talking about India specifically, according to the records of the second quarter of 2020, which happens to be India’s fiscal year as well, the GDP contracted by 7.5%. The pandemic made the country enter recession for the first time after its independence. In the first quarter (ending in June), the country’s GDP shrank by 23.9%.

India’s GDP loss for the second quarter of 2020 #infographic

Can technology help the economy to recover?

When the COVID-19 hit the world, the state of the world started to change drastically. Among these changes was the dire situation of the world economy. The US economy was also hit hard, and this hit is being directly compared to The Great Depression and The Great Recession alike.

In the last week of April 2020, the unemployment rate in the US peaked at an all-time high, with 14.7% of US population filing for unemployment. This percentage of unemployed residents was the highest since 1939. In some states of the US, one in every four people is out of work.

To add fuel to the fire, the lockdown has helped very little to maintain the economy. As the stores came to a closure, and many businesses were forced to close down, the economy suffered in the process. These closures were also the reason for the high unemployment rate. Many big companies have also filed for bankruptcy, with multiple stores of them were closed down and some even shutting down completely. Companies like Airbnb said that their 16 years of business was brought to its knees in 6 weeks.

Can technology help the economy to recover? #infographic

U.S. Economic Growth Cycle Disrupted by COVID-19

 Countries all across the globe are being ruled by economic disturbances, and the United States hasn't been safe from it either. The unemployment rate in the United States was at an all-time low ever since the period of the Great Recession. With the sudden emergence of COVID-19, the economic matter has only been going downhill. Undoubtedly, this entire period of the novel coronavirus and its impact on the United States can be termed as just another recession. 

So how has the economy been affected? The future looks gloomy and uncertain provided the current circumstances in which a majority of people have lost their jobs. The majority of these people are those who were employed in sectors which have been effected in the worst manner and have no chance to thrive from a work-at-home model for its employees or remote working opportunities. An example of these is hotels and tourism and travel industries. Not only the unemployment rate but new job positions in these industries are not likely to spring up until and even after the global pandemic comes to an end.

U.S. Economic Growth Cycle Disrupted by COVID-19 #Infographic

Unemployment Rates of COVID-19 and the Great Recession Peaks

 If we think of it, technology is the reason why many people haven't lost their jobs during these stressful times of COVID-19. Back in 2009 and 2010 during the Great Recession, technology had not evolved to the extent it has today, and thus unemployment was at a much larger scale. During the period of the Great Recession between 2009 and 2010, employers and employees both did not have the opportunity to benefit from remote working technologies.

So would it be fair to compare COVID-19 with the Great Recession of 2009 and 2010? Let's find out. Both the crises had uncertainty, collapse and major economic reactions. By May 2020, around 20.5 million Americans were unemployed. The U.S. unemployment rate was at 3.8% in February 2020 but after the rise of the global pandemic, it increased to 13% in May. On the other hand, the unemployment rate peaked up to 10.6% in January 2010 during the Great Recession, the time period of which was officially from December 2007 to June 2009.

Unemployment Rates of COVID-19 and the Great Recession Peaks #Infographic

The Economic Impact of COVID-19 on the World

 As of today, the number of people COVID-19 has infected, stand above 10,000,000. Out of these infected people, more than 5,550,000 people have successfully recovered. The number of deaths is decreasing which is undoubtedly good news, but this is just one side of the novel coronavirus. The impact that it has had on our physical and mental being. Other than worldwide lockdown and social distancing, the global economy has also suffered at the hands of this pandemic.

 There's not even one country, whose economy has not been effected. A lot of people have even lost their jobs. The suffering of every industry varies as per the nature of the industry and its response and its flexibility to change its working methods during these troubling times. The 'work from home' strategy cannot be applied in every industry, and thus those left behind, are standing in the dark. One of these industries is travel and tourism, say, you can't work from home if you are a pilot or a captain.

The Economic Impact of COVID-19 on the World #Infographic

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