Effect of COVID-19 on Economies

In history, world economies have been gone through some tough times like the great depression of 1929, the oil crisis 1973, the financial crisis of 2008.  Among this, the great depression was the worst of all lasting up to 1939. It was begun with the stock market crash, and at it's lowest in 1933 more than 20 percent of the USA population was unemployed. It did affect economies around the world more or less. The same goes for the financial crisis of 2008. If we closely analyze the history, we can see that this crisis took years to drop employment and growth rate significantly. But when we look to current COVID - 19 pandemic, nearly every major economy is under lockdown dropping production and exports in just a month. After this lockdown, there is a fear of unemployment, especially for daily labors, they may not find jobs for months. Factories may struggle to sell their products as people will have fewer savings and less disposable income, which may lead to short term unemployment.  Governments already spent a sufficient amount of their budgets in the fight against this pandemic. As the private sector may fail to create new jobs, the government will have to take the matter in hands and spend on public projects leading to an increase in the deficits. Even the agriculture sector is suffered, as most countries banned exports and imports. Farmers in developing countries are struggling to find laborers for the harvest, traders are worried about the market for sale. Overall COVID-19 may have a great impact on economies. If lockdown extends these risks will also increase. Stay at Home. Stay Safe.