Knock-on effects of COVID-19 will be worst economic crises ever in the history. Economic downturn after COVID-19 will be much more then the The Great Recession that devastated world financial markets as well as the banking and real estate industries. The crises which was originated in United States caused millions of people to lose their life savings, jobs and homes. The Great Recession started in December 2007 which resulted in declination of 4.3 percent GDP and the unemployment rate approached 10 percent.
It is expected that the aftermath of COVID-19 will result in the declination of more than 4.64% GDP. More likely it will cripple banks around the world, from Iceland to Hong Kong. The intensity of the downturn will jolt the globe, no matter how well-integrated world markets have become. Places dependent on housing construction, large capital goods manufacturing, exports, and speculative finance will suffer the most. COVID-19 will hit the economy of industrial countries directly.
This situation can be a blessing in disguise for Pakistan as it is an agricultural country. Pakistan can lead the world through its agro-based economy. In total, the agriculture sector contributes 18.5% to the country’s GDP. Need of the time is to keep agriculture sector up and fast. After meeting its own needs Pakistan can export crops to other countries as well. Pakistan should invest more in the agricultural sector and cash crops which is also the solution for unemployment.
Sidra Shamim, Islamabad