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Microeconomic impacts of COVID-19 pandemic: A Review Analysis and Policy Recommendations

Publishers, KMF and Rahman Tisha, Tajrin (2021): Microeconomic impacts of COVID-19 pandemic: A Review Analysis and Policy Recommendations. Published in: Asian Microeconomic Review , Vol. 1, No. 1 (15 October 2021): pp. 33-38.

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Abstract

Covid-19 has activated a global shock comparable to World War II. Worldwide lockdown, closed borders, regional trade, accelerated regionalism, and mitigated policies have resulted in a massive loss in the global economy. For some economists, the economic shock produced by the imposed lockdown is more costly than the pandemic itself. The progression of this contagion and its economic consequences are still highly unclear. They are also making it difficult for policymakers to design an appropriate microeconomic policy response. According to some estimates, each additional month of crisis costs around 2-5 percent of global GDP, and the GDP suffers a hit of about 3-6 percent, depending on the country's structure. As the pandemic is spreading fast, breathing issues are flattering more prevalent. We presume that the individual firm liquidity & preservation of the economic network are two further issues. Individual firms seem valued components of the economic cycle, and their absence will significantly impact the economy and the state. In contrast, banks may be reluctant to lend operating cash to firms. The current global crisis is unlike any other in a century, and it has caused financial volatility, which has led to the lockdown. It pledges on by the possible economic health consequences of mitigation strategies, such as the collapse of tourism, small business, the energy industry, rising oil prices, significant increases in unemployment, and increasing government debt. Predicting a solution for this pandemic is hard to define. Still, this study implies that if we ensure deceit in all sectors, inventive design planning on economic projects, if all the world leaders trumped up better determination, the microeconomic effects would be better off.

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