Businesses have been struggling worse than ever and the pandemic had a rippling effect on the global economy. Whether there were big guns or small businesses, all are going through tough times to generate profits for themselves, and even preventing losses has been an immense task. Due to this business lockdown situation and travel bans millions of people are laid off from their jobs posing a serious existential threat to economies around the world.
Businesses do all kinds of forecasting to try to maintain that equilibrium between supplies and demand. If anything goes out of order, it has a direct impact on the economy of a region. If the affected industry exists on a large scale, the compound effect is seen in the global economy.
The prime example of this is the recent price trend of oil where it fell to negative due to such extraordinary reduction in demand. This is the rippling effect on supplies and commodity pricing when demand ceases. In recent months, the demand for all major products and services had to see a downfall, and factories weren’t even to operate even due to pandemic fears.
With both the demand and supply cycles disturbed, the economic recession has been experienced worldwide. The effects of this recession are termed greater than the one that occurred in 2009. Trade wars between the world powers are also making matters even worse and the recovery mode is being delayed.
Masses who were always made to believe that their jobs are here to stay forever or governments will always come to their rescue in case of an economic or public health disaster, they have found themselves fooled during all these times. It was just a matter of time where big guns started laying off people or made a reduction in the salaries to accommodate themselves only to the best of their powers.
This had a severe impact on the buying power of people and caused a change in lifestyle preferences too. They are now more rigorously thinking of working towards self-sustainability models and ensure they survive the next crisis without much financial disorder for themselves.
