The outbreak of 2020 has affected the economy of all countries. This is the biggest economic meltdown we have ever faced. It is in fact, worse than the 2007-08 crisis.
Markets are closed, businesses are shut, stocks are crashing, and there is not a single country that is spared from the global economic crisis. At this current rate, it is becoming increasingly difficult to get the situation under control. In this post, we will discuss the economic impact of COVID-19 and what should be done to get it under control. Right now, we are in the face of a global recession.
Economic Impact of Coronavirus Pandemic
The Indian markets are falling at a very fast rate. At the starting of the year, the indices were trading at the highest but it took just three months of coronavirus pandemic to bring it down to the lowest.
According to reports, the condition of the markets is worse than what we have witnessed in 2007-08. The crisis is mainly resulting from severe lockdowns in many cities and countries. Almost all the major countries are on lockdown and businesses have seized to operate.
Since the outbreak turned into a pandemic in just a few weeks, it gave no time for any preparation. The situation is only getting worse by the day. It is anticipated that we are on the verge of facing the worst economic crisis in history. Those who were unprepared will be wiped out from the market, whereas the bigger companies and businesses will struggle to get back on their feet.
The prices of gold are trading at the highest because of panic investors trying to secure assets. The entire pandemic has severely affected businesses. However, some of the sectors have been hit harder than others. This has led to the investors thinking about what should be done with our Sips.
Tips For Personal Finance In The Pandemic
Here is what you should do for personal finance:
- You should cut out discretionary spending.
- If you have any emergency fund in place, it’s time that you utilise it now.
- You should think of an additional source of income. If needed, then you should start learning new skills to multiply your income.
- You should not get involved in the panic investment.
- You should not liquidate your retirement savings or investments.
- You need to be frugal with food shopping, instead of hoarding it.
In this time of financial crisis, you need to take all your monetary decisions carefully. One single wrong move can cost you a lot. You can also check out Covid19 relief measures. It can be helpful to you in many ways.