While it cannot be predicted accurately what type of economic damage will be there from the second wave of global pandemic ie. Covid-19, there is a general opinion among economists & financial experts that it will have severe negative impacts on the global economy. The Covid-19 has already caused the shutdown of businesses, transport and made people quarantine, leading remote working by the private employees worldwide. Not only this, but it has also compelled countries to close their borders and made us witness a mass migration by the laborers in search of a living. Since the global pandemic has spread at a fast pace and is continually infecting millions, it is bringing economic activities to a closer standstill as nations are required to bound strict restrictions on movement to stop the further spread of the virus. There is no doubt that the global economy is at a huge threat of damage.

Here, we have brought you the opinions and views of one of the popular financial experts, Mr. Ngulminthang Lhanghal on the impact of Covid-19 on the overall global economy and its future amid pandemic. Let’s have a look:

1.How The Worldwide Financial Emergency Is Likely To Affect Development Support Assistance?

According to the Financial expert Mr. Ngulminthang Lhanghal, it would be a serious & impactful step on the hands of influential donors if they withdraw their assistance from the global aid. It would lead to even more poverty in the developing nations. Though it is acceptable that the backing by this financial aid is not expected to increase in the coming year, rather it could decrease. However, the development aid should be focused on improving emergency and disaster readiness measures in all the sectors to reduce the negative effects prevailing across all industries. In the post-Covid world, globalization and private capital inflows into the developing markets will contribute to public finance and development aid assistance.

2. What Are The Expected Impacts Of The Covid-19 Pandemic On Developing Countries?

There is no doubt that the global pandemic is putting negative impacts on developing nations because of the mitigation steps implemented by many nations in the form of lockdowns. In my opinion, it would be much more difficult for the developing countries to arrange sufficient revenue and fulfill their fiscal targets due to the decreased activities and business shutdowns. The decreased quantity of exports following the possible worldwide economic recession has brought an uneven level of payments to these nations as loans and interest payments are due. I would say that the development support programs should focus on improving economies.

3. What Should Nations Do To Protect Themselves From Recession, If It Happens?

The global pandemic of Covid-19, emerging from Wuhan in December 2019 has caused global economic activities to suffer due to closed borders, inadequate healthcare facilities, quarantines, and self-isolation across the world. According to Mr. Ngulminthang Lhanghal, several other factors such as the increasing rate of unemployment, business shutting down, GDP, and consumer price index are likely to have significant impacts on the global economy. No doubt that the second wave of Covid-19, a continued recession is unavoidable. However, certain measures can be helpful including effective & on-time Covid-19 vaccination, and financial support by the government to different sectors of the economy, etc.

4. What Do You Think A Potential Recession Will Be There And What Should Be Done To Cope With It?

The recovery in different economic sectors and nations can vary. Additionally, worldwide lockdowns and border closures are likely to impact supply chains followed by poverty in third-world countries. In this scenario, international collaboration is required to ensure sufficient supply chain and international trade activities. Depending on the Covi-19 situation, the recovery may take a few months to get things back to normal.

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