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National Government Agencies Learn from Record-Breaking 2020 For Natural Disaster Costs
March 8, 2021
A Health-Related Disaster with Record-Breaking Financial Losses
Many national government agencies have had to bear the brunt of COVID-19, closing borders, locking down local economies, and hurting international trade and business in an effort to stop the spread of the virus. Aside from the obvious health impacts of the pandemic, March saw a stock market crash that drew comparisons to the great depression, supply chain failures that had businesses scrambling, and consumers paying high prices for basic amenities.
Monetary Losses Continue to Pile Up for Government Agencies
The third-party agency known as the International Monetary Fund predicts that the world economy will lose $28 trillion as a result of the pandemic.
Government agencies are expected to feel the after-effects of the pandemic for the next five to ten years. Markets have been severely impacted by wide-spread job losses due to rolling lockdowns, with many investors scaling back their spending and re-focusing their efforts on other opportunities.
The pandemic largely impacted education, with crowded classrooms becoming a means of transmitting the virus, sending tens of thousands of students into an un-tested world of digital education. The long-term education impacts have not been fully understood. Governments have had to invest millions into rethinking education and ensuring student safety in their respective countries.
Government Agencies Should Expect More Financial Losses
The battle isn't over for governments. World banks have had to step in and slash rates and inject cash into the market to prevent complete financial collapse. Governments will need to continue to support the job-less, including the thousands of people working in the travel and tourism industry.
Wage subsidies and unemployment insurance is currently helping those find a new career and navigate these difficult times. However, if government support runs out, many will be forced to sell their homes and search for new opportunities elsewhere. The entire pandemic has threatened the standard quality-of-life for many countries, and financial support will still need to be delved out to vulnerable communities to prevent further collapse.
The Fight Against COVID-19 Simply Isn’t Over
The pandemic has proven to be anything but predictable, and government agencies could experience further losses even with the emergence of a vaccine. Until case numbers drop and entire populations are immunized against the virus, local lockdowns will impact economies and hurt a government’s efforts of returning to a state of normalcy.
Continued planning, risk management, and innovation will help governments bring their countries back to pre-pandemic levels.
Government Agencies Can Find Comprehensive Solutions for COVID-19
Today governments are being challenged on their ability to maintain operations and promote long-term recovery of their economy. AFIMAC specializes in ensuring any government agency can fulfill its commitments to society in the midst of the COVID-19 pandemic. AFIMAC can offer guidance and tools for mass vaccination efforts, testing, screening, security, and access control solutions to respond to any disaster.
Risk management has never been more critical; stay prepared for anything. Lean on the experience of AFIMAC and navigate any of the complications attributed to COVID-19. Contact us directly to learn more.