Covid-19 and Economy’s Reaction to it

The covid-19 is a virus that affects the lungs and is highly contiguous. It transfers from one person to another via touching each other , touching stuff or in the air which directly affects any type of social events from family gathering to buying from stores therefore it has direct affect on the economy from small stores to countries because of the rule of social distancing which the governments came out with to protect the citizens from spreading the virus to each other by locking them self’s in the house and avoiding any social gathering with this rule many businesses came to losses like restaurants , barbers , gyms…etc. and some businesses gained a lot from this epidemic especially medical company’s and hand sanitizer company’s which made their sales shoot through the roof.

At the same time the increasing impacts of the spread of the Covid-19 on the economies of countries, companies and productive sectors, a number of countries, economic groups and financial institutions were quick to take precautionary measures to contain the negative impacts of covid-19, UNCTAD (United Nations Conference on Trade and Development) reported that China's exports of spare parts and vital components For products ranging from cars to cell phones are expected to reduce by 2% annually, which costs other countries and their industries $ 50 billion dollars.

As for the stock market exchange in Paris, Frankfurt, London, Madrid and Milan it fell by more than 10% in deliberations after the European Central Bank revealed a series of measures to support the euro zone economy in order to face the consequences of the novel Coronavirus, but it did not reduce interest rates. On the other side of the Atlantic, trading on the New York Stock Exchange market was suspended for 15 minutes for the second time in a week, after declining by 7%, all of this show us the disastrous consequences of covid-19 pandemic on the stock exchange market.

Finally, this pandemic showed the people which businesses are really essential and which are not. Because of the lockdown and the closed borders, most of the production factory’s had to close for the lack of raw materials and even country’s who has a lot of resources no matter how big it will always lack on materials therefore each country needs the other countries to import its products. And because the people are staying home most of them are not getting money and with no money the economy is starting to crumble and suffer from the lack of some of the consumption goods. But once the pandemic is over everything will get refreshed and a new page will be turned.