The economic consequences of covid-19

It appeared in our lives and everything changed... For more than a year it has been wreaking havoc on all continents. Have you guessed who it is? Ladies and gentlemen, please give a round of applause to the Crown Virus. We have to laugh to keep from crying because it has made us see so many colors. Better known as Covid-19, the coronavirus made its appearance among us in 2019 and everything gradually deteriorated as much on the social level but especially on the economic level....

Indeed, it makes many states around the world live in martyrdom. From the numerous confinements to the travel bans, the economic consequences of the virus are enormous.

1- Decline in government revenues

It is quite normal that with a drastic decrease in activities throughout the world, one of the consequences of covid-19 is the decrease in government revenues and therefore in GDP. The countries most affected are mainly exporting countries. This leads to the next consequence.

2- The multiplication of debts

To plug the holes caused by insufficient revenues at the end of the year, several countries have resorted to loans. This solution, often described as a last resort, has the advantage of allowing States to finance their various projects, but it only pushes them into a state of extreme poverty, as is the case in several African countries.

3- Increased unemployment rate

This was not the case everywhere, but one of the strategies used by several companies to face the Covid-19 pandemic was a reduction of employees. The equation is simple, fewer employees = fewer expenses and therefore less chance of ending up with a negative income at the end of the year. This strategy has simply increased the already growing unemployment rate in some countries.

To mention only those, we realize of course that the COVID-19 pandemic has spared no one for more than a year now... We hope to find a better life by then if not the one we had before.