In order to “flatten the curve” of COVID-19 transmission, many countries across the globe have resorted to lockdowns. With millions of people confined in their homes, businesses stalled, the economic activities are in the doldrums. In turn, the global economy has, quite naturally, shrunk. The economy has taken the worst hit which has stalled the growth, forcing it into a period of recession. In the U.S. millions of people have already filed for unemployment benefits owing to the massive job loss. These claims have jumped 3000 per cent since March beginning. Advanced economies have taken the worst hit, followed by emerging markets and developing countries.
However, it’s going to be a mammoth task to bounce back from such a situation since the shock of the virus will prevail among all. The virus has inflicted some permanent dents in the economy. The countries already in a precarious position have taken the worst hit. According to economists, it might take as long as 2031 for the economy to be “normal” again. An assistant professor of Public Policy and Urban Affairs and Economics at Northeastern University, Alicia SasserModestino, says that this might not be the right time to reopen businesses to avoid further contamination. If the businesses are to open now, it would only make things harder to contain future mass breakouts.
SasserModestino says, “This is not a tradeoff between lives and livelihoods.” According to the estimates made by Massachusetts Taxpayer Foundation, Massachusetts can see an 18 per cent job loss by June. According to her, the worst-hit state in this economic disruption might be Boston. The huge numbers of international travel are the reason behind the surging number of cases. Most importantly, a conference which was named the “super spreader”. Boston became one of the worst-hit states in the country.