Monday, 20 April 2020 00:00

Dealing with the Recession in the Pandemic

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The International Monetary Fund -IMF predicts the impacts of  the Corona virus or Covid-19 outbreak will be the worst recession since the Great Depression of the 1930s, or almost a century ago. This is very reasonable because due to the Covid-19 pandemic, almost all economic sectors in the world have been  totally paralyzed. Starting from the airlines to the manufacturing industry, the impacts have  reduced and even stopped operations and have to lay off employees. The reason is that  many countries in the world impose restrictions on the movement of their citizens to break this deadly virus chain of spread. 

The predicted negative global economic impact of the  Covid-19 pandemic certainly hits the global economic growth. Indonesia also undergoes the adverse effects. This year, the IMF predicts that the Indonesian economy will only grow 0.5% from the previous 5.0% in 2019. 

Behind the threat of economic recession as a result of the paralysized some economic sectors, there are sectors that have a great opportunity to be the driving force of the Indonesian economy during the Covid-19 pandemic. Economic researcher from the Institute for Development of Economics and Finance (Indef), Abra Tallatov in an online seminar in Jakarta on Friday night (17/4) stated this. According to him, they are the health sector and information communication technology (ICT) industry such as e-commerce or online trading. 

It’s worth knowing that during this pandemic, many people need medical equipment such as masks and Personal Protective Equipment (PPE) for medical staff, which are increasingly rare and expensive. This situation prompted several business sectors to become producers of medical devices. This transition, in addition to making it easier for the public and medical staff to obtain medical devices at affordable prices, also helps reduce unemployment. 

Besides the medical devices, e-commerce business is also a major public need for transactions in the Covid-19 pandemic. Because people are afraid to shop directly or offline,   some purchases are made online through an e-commerce platform. No wonder many local e-commerce platforms have emerged, especially to meet the needs for food. This helps consumers in the process of buying goods and farmers and traders market their wares. 

The Covid-19 pandemic indeed paralyzes the economy, but that does not mean people should  accept the situation with resignation. Many can be utilized and become a new source of income for people who are creative and can see opportunities. It is hoped, albeit indirectly, the opportunity can still increase national economic growth.

Read 313 times Last modified on Monday, 27 April 2020 09:32