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How virus massacred the economy ?

Updated: Sep 22, 2020

How Covid-19 massacred the economy ?

Covid-19 a global pandemic that affected the whole world and took down the world’s economy as seen only in the great depression of World War 2. The disadvantage here was that the enemy wasn't visible to fight with as compared to world war. The pandemic unenthusiastically affected global economic growth beyond anything experienced in nearly a century. Estimates so far indicated that the virus could cut down global economic growth by 3.0% to 6.0% approximately in 2020, with a partial recovery in 2021, assuming there is not a second wave of infections.

Economic growth for the second quarter of 2020 was between -3.1% -5.1% (approx.).The main sectors that have been hit by the pandemic are trade, manufacturing, mining, recreation, and transportation. The median of -4.3% means that growth has been lower than predictions made by the government and independent institutions. The Indonesian government has issued a Regulation Number 25/2020 on the Implementation of Public Housing that will deduct 2.5% of workers’ wages, plus a contribution from employers of 0.5%. The trade unions said that the policy was announced at the wrong time since the workers currently have lost their income and jobs.

Local organizations are more focused on doing research and capacity-building with trade unions and workers. In addition to that, some charities have been initiated to support the most vulnerable groups, such as homeworkers and daily wagers.

Money management is important at all times, but it becomes essential during a crisis like coronavirus pandemic. We are starting to see some economic consequences already, but what is less visible is the financial-induced stress caused by the uncertainty. Worrying about your finances can affect your mental health and well-being. Following are some suggestions to be considered during these crises

1. Inspect changes in your expenses.

2. Identify the decrease in expenses.

3. Figure out the best areas of investment.

The full impact will be unknown until the effects of the pandemic peak but one must remember that life goals are more important than a little higher or lower profit. It is far more important to make sure that you have the required amount in your hands at the right time. It is always better to be safe than sorry. This is extremely true during these unsure times.

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