Following the need to abide by the social-distancing measures in public zones, travelling via air will not be the same after the pandemic. The new standard of hygiene and sanitation to be maintained among the passengers in aircrafts is likely to significantly shrink the global supply of airline seats in comparison to that of the pre-pandemic era. Because, airlines will have to seat passengers such that they are at a safe distance apart, and therefore, will have to operate their airplanes below full capacity. International Air Transport Association (IATA) expects airlines to operate at nearly 40 percent lower capacity if the middle seats have to be eliminated. Meanwhile, the price of airfare is also likely to hike substantially whilst markets correct to the new equilibrium. IATA, for instance, expects airfares to soar by 54 percent for travellers in Asia-Pacific region. As a result, the repercussion is likely to be felt heavily in the tourism sector in years to come.Continue reading
Forty-two days into the nationwide lockdown, the focus of the government rests upon flattening the curve – as it should be. But the simultaneous economic quarantine has managed to bring all sorts of economic activities to a grinding halt. At the most telling fronts, it has taken a hit on the GDP, escalated inflation, surged unemployment and disrupted livelihoods of daily wage laborers who have little to no economic buffer.Continue reading
During times of crisis such as the one we are currently facing, people’s expectations from the government tend to rise. The government is viewed as the monolithic entity which can help overcome the crisis and get everyone back to pre-crisis normalcy. This expectation from the people provides additional impetus to already expanding government, further steepening the slope of the government expenditure trajectory. People expect a huge stimulus package from the government so that their jobs and businesses would have an external shield.
This blog was originally published in Setopati on May 2, 2020.
Flatten the curve via lockdown; then what? As long as the health infrastructure does not see an unprecedented scale of enhancement, and at similar rate, then we’re pretty much shifting the burden of Covid-19 to the future. The burden comes in (at least) two ways – public health (assuming the virus is as lethal as many are believing) and economy.Continue reading
It need not be reiterated that the pandemic will result in severe unemployment and slowdown of the economic activity. Countries all over the world to this regard have started taking measures in the form of massive stimulus. While some see it as an opportunity to revive global participation in solving problems, the reality might be quite different after the pandemic is over or after lockdowns are relaxed.Continue reading
Covid-19 at its apotheosis has certainly put the world into a dire strait. It has drawn the global society into an acrimonious situation with significant disruption seen on the governance, economy, and personal lives. And, it can be well presumed that the repercussions of the pandemic will be felt around the world in wide spectrum of areas in times to come. The post-traumatic distress is likely to remain vivid among the societies, civil organizations, and governments at least until the rest of the decade. In the meantime, the Covid-19 is likely to dominate the concerns of mass-media and general conversations alike.Continue reading