How the pandemic- COVID-19 affected industry and economy worldwide?

 

The COVID-19 pandemic has precipitated the world's greatest economic downturn since the Great Depression, with a forecast 3.5 percent decrease in global GDP in 2020 as opposed to an increase of 2.8 percent in 2019. Due to industry closures, millions of workers have lost their jobs. Numerous studies have examined how the pandemic has affected the economy using a variety of approaches, including production-based or computable general equilibrium (CGE) models, epidemiological models, event studies, and larger panel data analysis.

​

Over the course of 2020, the effects of pandemic variables on an actual indicator of economic activity—industrial production (IP)—spread across a wide variety of economies. It is crucial to make a distinction between the contribution of local factors and international trade to the dissemination of COVID-19's economic consequences. An estimated model that revealed industrial production during the course of 2020 into the contributions of the explanatory variables was generated by analysing the industrial trajectories through categorising countries by rich, medium, and poor.

 

We find that the implementation of lockdown restrictions (the purple bars) was the primary cause of the collapse of production in all three country groups last March and April. These restrictions were responsible for 65% of the decline in IP in the richest countries, 79% in the middle-income countries, and 81% in the poorest countries. Contrarily, COVID-19 fatalities (the orange bars), which are sometimes used as a proxy for social exclusion, were responsible for only 19% of the IP decline last spring in the richest countries and had no discernible effect at all in the poorer nations in our sample.

​

Thus, the decline in international trade was caused by pandemic effects on the economy's trading partners; as a result, it shows the indirect effect of the epidemic on the economy in question rather than the direct domestic effect.

​

Pandemics can also result in decreased tax receipts and increased spending, which puts a burden on the government's finances, particularly in lower-middle-income countries (LMICs), which have tighter budgets and inefficient tax systems.

​

The Ebola virus in Liberia had a serious economic impact due to the rise in public health costs, the country's economic slump, and the reduction in revenue as a result of the government's inability to raise money due to quarantine and curfews.

​

The pandemic's economic crisis is also being exacerbated by labour shortages, transportation problems, job losses, restrictions on trade and travel, and closed land borders.

​

The analysis found that the LME economies were more vulnerable to the effects of disease epidemics than the CME economies, where the consequences of the sickness were mitigated by government action. We can infer from this data that greater government involvement can mitigate the effects of disease outbreaks.

 

Impact of pandemic on different industries and labour:

 

The ILO’s initial evaluation of the effect of COVID-19 on particular social and financial sectors and industries is captured in a sequence of sectoral briefs. The briefs additionally include policy responses and measures taken through ILO constituents – governments, employers and workers – in addition to available ILO equipment and responses at the sector-specific level. 

• The supposed audience is ILO constituents at the national, sectoral, local and international level, in addition to global corporations and other partners in the attempt to develop respectable work for men and women in particular social and financial sectors. The briefs will be up to date regularly.Constituents are invited to speak about and make contributions to the briefs in order to serve as repository of proper practices and instructions learned in pandemic responses so as to “build back better” in the post-pandemic future.​ During the COVID-19 pandemic, ports have needed to alter to the change of decreased volumes, employee shortages, the implementation of occupational health and protection measures for dockers and shore personnel, and the adoption of teleworking and faraway operations for workplace workers. As the results of the pandemic on our meal structures continue to unfold, the learnings from the pandemic outbreaks in processing vegetation in numerous important meat-generating nations are catalysing reforms that need to make contributions to the sustainable improvement of the region. The COVID-19 pandemic has also had a giant effect on the development quarter, that is touchy to financial cycles. Yet, on the upside, production holds a good deal of ability to stimulate restoration, a way to its ability to create jobs. The COVID-19 pandemic has drawn interest to the already overburdened and understaffed home and institution-based care region in lots of countries. This highlights the demanding situations confronted in the recruitment, deployment, retention and safety of enough numbers of well-trained and encouraged care workers. Sustainable funding in health and social care systems, inclusive of the team of workers itself, and in respectable operating conditions are required to make certain the preparedness and resilience of the sector in instances of disaster and beyond.

 

The future of Industrialization in a post pandemic world 2022.

 

The extraordinary problems we face now call for our active participation in promoting an inclusive and sustainable recovery in the post-pandemic period. There has never been a greater pressing need to step up efforts to implement the 2030 Agenda for Sustainable Development.

In this case, there are a few crucial details to be aware of:

• The development of socioeconomic resilience is significantly aided by the industrial sector. Manufacturing keeps economies afloat and propels them forward by ensuring access to necessities like food, medicines, and vaccines. Countries with stronger industrial systems were able to endure the crisis better.

• • Industrial prowess and digitization aided nations' resistance to the pandemic. Digitally sophisticated businesses are better able to withstand the effects of the pandemic and adapt to the new normal since they may continue functioning remotely and keep their customer bases thanks to digital technologies.

• Digitalization, production rebalancing, and industrial greening are three significant megatrends that are anticipated to have a significant impact on the post-pandemic landscape. It is important to note that countries must take these megatrends into consideration when developing recovery strategies.

• Due to the pandemic's dire demand, the pharmaceutical, telecommunication, hygiene production, and online streaming businesses all saw growth, while other industries suffered from a lack of use.

​

​

​