At the heart of the coronavirus crisis earlier this year, Managing Director of the International Monetary Fund, Kristalina Georgieva, warned that the world is set to face the worst economic crisis since the Great Depression in the 1930s. She assesses that the recovery will be long drawn and may not even be fully achieved in 2021.
1. Worldwide government measures are not favourable for businesses
Many governments around the world have imposed lockdowns, while others are advising their citizens to stay at home to counter the crisis. With consumers having to stay at home more or entirely, companies which depend on them and companies which support these businesses have been drastically affected. Some have shut down while others have laid off their staff or have frozen salaries. There is not much revenue being generated, and people are losing money.
2. Impacted the job market
Close to 81 per cent of the workforce worldwide have been directly affected by this pandemic due to the closure of workplaces. With the International Monetary Fund expecting a negative income growth per capita to more than 170 countries this year, Singapore is not off the hook – it may be as equally affected like other countries of the world.
The sudden interruption of commercial activities has threatened the very livelihood of citizens and the economic pain generated raises fear and anxiety amongst families. Some might be worried about their daily expenses and some might have placed their future plans on hold due to the economic uncertainty.
3. Prepare for future financial plans
Currently, this pandemic is not just a public health issue. It has influenced every sector of our livelihood and will require significant effort to restore. Even when the virus has been suppressed – albeit it is not clear how long this will take – the recovery is set to be troublesome and challenging. The mass joblessness and a potentially widespread bankruptcy necessitate a need to think of other ways to sustain yourself financially. Services like personal loans can be pursued to help keep you afloat as you look for more creative ways to generate income. And for entrepreneurs, small business loans are also available with easy application procedures to help meet business obligations.
The economic landscape has been shaken worldwide, and people will need financial help before the situation normalizes. The future is quite uncertain, but there is hope that everything will turn out well.
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