In the latest issue of the Global Economic Prospects Report for June 2020 by The World Bank titled ‘Pandemic, Recession: The Global Economy in Crisis’, it has been reported that the economy of the world is estimated to fall by at least 5.2% this year due to the novel human coronavirus COVID-19, its worldwide shocks and after effects, the consequent job losses, and the steepest recession in decades.
According to the World Bank, the per capita and the Gross Domestic Product (GDP) – a basic economy growth measure – of most countries will shrink further this year despite the effort by many to cushion the blow through government, non-profit and privately-funded financial support programs, charities, organizations, and other funding options. In spite of the policies being designed to protect the economy and provide support to affected citizens, innumerable countries are still struggling to catch up to the quickly declining economy and have not yet been able to design any policies except for the general healthcare and social distancing Standard Operating Procedures, known more commonly as ‘SOPs’ around the globe. Uncountable states have yet to address the lack of safety nets for jobless communities, especially those reliant on daily wages.
The World Bank has estimated that due to 7,477,997 positive cases (WorldoMeter) of the virus having been reported around the world, and the subsequent need for quarantines and multi-level lockdowns, many business industries have had to come to a complete halt, with practically no signs of the virus disappearing or at least dissipating any time soon. At the moment, the USA is at the top of the list of 215 countries with 2,045,715 total cases and over 788,000 recoveries of the virus. Pakistan stands at number 15 with 113,702 cases and over 36,000 recoveries.
While the global GDP is estimated to fall by 5.2%, large developed regions like even the United States of America and Europe could face a contraction of up to 7% in the economy. For America alone, it will not be before 2021 that the economy starts to recover from a 6.1% economic shrinkage. Investment opportunities are lying forgotten, with people merely looking into options, but most of them pausing just before actually making any major transactions. People are preventing from making larger decisions so that they can save up for worsened economic conditions which are more than likely still waiting on the horizon to reveal themselves. Businesses and individuals who are lower on the economic supply chain are massively suffering from the consequences of the economic deterioration affecting billions across the globe. With most of the population having lost their jobs, and thus their means of daily income, the situation of the labor market is being compared by many to those during the Great Depression.
It is not even just individuals facing financial crises at the moment. Large, multinational companies and brands have declared bankruptcy over the past few months, further deepening the crisis and its effects on the global economy. The worry here is that if it takes longer than the projected time period for the recession as well as the virus itself to fade sufficiently, this pandemic could continue to cause thousands of companies to close shop with the only foothold available for still remaining relevant present in the form of turning purely into an e-commerce business.
Recently, labs and scientists have been surveying the virus and its spread across the Earth, and have been revealing that a second, much more dangerous wave of infections and positive cases is rolling in. But this time, it could be the younger and middle-aged generations that would be affected by COVID-19 instead of just the elderly or those with compromised or weakened states of health and well-being. On Monday, June 8th, the American National Association of Business Economics released in their monthly survey that this second wave will be the biggest risk to the economy of the USA. The reason for the healthier communities becoming a target for the virus is due to many countries partially lifting their lockdowns for offices to resume operations and construction work to recommence.
One of the reasons for such a major hit to the economy is that this is the time when the business year comes to a close, and businesses and individuals do not usually save up until July every year, relying on the annual increments to fall into place. However, this year, there would not be any such good news to look forward to for a while as the economy sinks lower than ever before in decades.
To help the community of Pakistan, EBR Energy is playing its part by helping businesses, individuals and industries to recover their losses. By going solar, you can save up on all of the unnecessary electricity, energy, and power costs that increase on a daily basis, especially during the summer due to the surge in usage of the cooling systems and the subsequent strain on the national power grid.
EBR Energy experts are available for quotes for solar electric system installations and to help you plan the conversion of your home, business, or industrial property into your own solar powerhouse.
EBR Energy also provides consultancy and advising on smart electric consumption and maintenance of your solar electric system. Contact our team for any queries and concerns.