The economy has greatly been damaged because of the lasting effect which the coronavirus outbreak has had over multiple countries around the world. In order to stop the spread of the Covid-19 outbreak, many countries across the world started implementing very tough measures.
Countries and world capital have been put under strict lockdown, bringing a total halt to major industrial production chains. In terms of how hard the economy was hit one can easily get a clear picture by looking at the origin of the outbreak. In China, where the coronavirus first appeared, industrial production, sales and investment all fell in the first two months of the year.
Experts opine that if this continues the country’s
export earnings will rapidly decreased by more
than 84 percent. Many companies may go
bankrupt being unable to bear the losses
Such a severe scenario can also be predicted to happen in any country of the world. In Bangladesh the countrywide lockdown has already caused a lot of businesses to shut down. This has resulted in businessmen in all sectors being been put in peril for shutting down their businesses due to the supply chain disruption because of the ban on transportation movement.
This disruption is causing the factories to suffer. As a result, the workers who are wage earners are also suffering. However, it is heartening to know that Prime Minister Sheikh Hasina has announced incentive package for all sectors which is undoubtedly a bold and courageous step.
However, proper use of the incentive packages must be ensured by the sectors that are going to get the money. Already many businesses have temporarily shut down because of the supply chain disruption. If this situation continues, there is a risk that the businesses will have to pay huge losses. Also, salaries to employees, rent and different bills as well as bank loans can also get halted because of this.
Experts opine that if this continues the country’s export earnings will rapidly decreased by more than 84 percent. Many companies may go bankrupt being unable to bear the losses. One can only wonder how long this situation will continue and the economy can hold on.