COVID-19 PANDEMIC : THE HEART RIPPER OF THE WORLD’S ECONOMIES
The world is being reset to factory settings by COVID-19. The consequential effects of this highly contagious virus cannot be overcome in a few months but years.
Global markets are plummeting in leaps and bounds. Trillions of dollars are being lost with each day that passes because of this pandemic.
We should not brace ourselves for a recession of the world’s economy. A regression would be a welcoming option though a difficult alternative. A depression stares the world’s economies in the face.
President Donald Trump has had to convince the American politicians to allow him to spend some trillions of dollars as a stimulate package to deal with the dire effects of COVID-19.
Countries have had to be locked down to save the citizenry from getting into contact with the coronavirus pandemic. Italy, Germany, Spain, China and even India have put their economies aground as a result of COVID-19.
African economies have started bleeding from the virus. Leaders of affected countries are being impressed upon to shut down their economies till a time the virus would leave the face of the earth.
Putting it simply, uncertainty strews the global space. The world must brace itself for the worst. It would take years to reincarnate this downturn that stares the global economy.
The International Monetary Policy and the World Bank are at work. They are looking to give some forms of insulin to keep the global economy afloat. Ghana will be a beneficiary of the packages the two financial watchdogs have decided to pump into the fight against COVID-19.
Aside the assistance announced by the IMF and the World Bank, Ghana’s Government has other sources to draw monies from to help in the fight.
The Bank of Ghana Governor in a recent engagement with the general public stated that Ghana’s Foreign Exchange Reserves have reached $10 billion, the first time in our economic history. In case of an extreme emergency, the country can fall on the Bank of Ghana.
The Stabilization Fund can also supply the country funds to fight this pandemic in an event that there are scarcity of resources to continue with the battle.
In all these, the world must start building a fortress to keep an intruder like COVID-19 out of its borders. COVID-19 may appear to have taken the lead in this race, our collective efforts can defeat it.
P.K. Sarpong, Whispers from the Corridors of the Thinking Place.