The coronavirus pandemic has reached all over the world, to prevent its spread many countries have been ‘locked down’ shutting down or stifling economic and social activities. Closing workplaces shrinks the economic output of locked-down regions. When a firm is closed by lockdown strategy, the productivity of its client firm is likely to suffer because of the lack of supply of intermediate goods and services. Supplier of the closed firm also likely to see reduced production because of shortage of demand.
A rear disaster, a coronavirus pandemic has changed dramatically of the world economic growth. As others countries implement necessary quarantines and social distancing practice. Our country Nepal also has been implementing the same. Globally economic growth has been falling down up to -3% approximately. This is a crisis like no others and it hits uncertainly on people’s lives and livelihoods of Nepal. A health crisis and financial crisis which interact in complex ways. While, economy is shut down policymakers will need to ensure that people are able to meet their needs and that businesses can pick up once the acute phases of the epidemic.
Impacts in Nepal’s Economy
As per the analysis by the Asian development bank, the outbreak of this deadly disease will hit almost every sector of the Nepali economy, shaving up to 0.13% off the gross domestic products and rendering up to 15,800 people jobless. In the phase of this crisis, the poverty stage of the nation has been increasing day by day. Nepal’s economy depends heavily on India and China, so the impact on those countries can highly impact on our economic activities too. Finance minister Bishnu Prasad Paudel triumphantly announced that the pandemic in Nepal had peaked and the lockdown had been lifted, trades, businesses and industries were cautiously optimistic. While, tourism and aviation sector also having zero revenue for the past five months. Banks had given loans worth Rs 1.1 trillion for hotels and restaurants, had lent Rs 40 billion to the transport sector.
The government’s tax revenue has gone down by more than half. The COVID-19 pandemic has led to a dramatic loss of human life and it impact on every sector of human life. The virus has also exposed vast societal inequalities, with zero-hours employees the most vulnerable to losing their jobs and workers in factories, warehouse and taxis being forced to make the decision to risk infection rather than lose precious incomes.
Working from home has become not as easy as other well-developed countries. Many sectors that require a physical customer presence such as travel and traditional retail are being wiped out. While remote working platforms as zoom has boomed. The pandemic has highlighted the importance of smaller, local supply networks that managed to respond and adapt rapidly to local communities needs when national and international chains were interrupted. The virus creates significant knock-on effects on the daily life of citizens.
Emotional as well as Mental Health Impacts on People
The coronavirus lockdown caused a significant shift in the behaviors and emotional state of the people. Unsurprisingly been a dramatic change in how we spend our day. The way we consume media has also changed since lockdown began. According to the data, the lockdown has held a potentially damaging effect on our emotional state. Those aged 65+ are the most emotionally affected since the start of lockdown, the lockdown appears to be having a positive impact on our desire to live a healthier lifestyle. There has been a 9% increase in the number of people saying they like to keep fit. However there has been 10% decrease in the amount of time spent drinking alcohol. People seem to be putting this healthier mind set into practice.
Meanwhile, dealing with existing mental health issues, financial worries and work, school, home life is bit more struggle. The nature of the crisis is unprecedented, the long-term effects on human capital, productivity and behaviors may be long lasting. In the context of Nepal, 80% of citizen are based on agriculture but food system become vulnerable and lead to increase in food insecurity, malnutrition and poverty especially among marginalized groups. Country has also been witnessing various adverse impacts of covid-19 in terms of human casualties, physical and mental casualties, physical and mental health on country’s diverse farming system and food system.