THE IMPACT OF COVID-19 ON ECONOMIC BALANCE

A. Introduction

Since December 2019, the world has been shocked by a new type of virus that has started to hit the citizens of Wuhan China, a virus called Corona Virus Disease or more popularly known as Covid-19. So quickly Covid-19 hit various countries indiscriminately, both developed countries (America, Italy, South Korea) and Asian countries (Vietnam, Malaysia, Singapore) including Indonesia. The spread of Covid-19 is greatly feared by people all over the world because it can attack the respiratory system and interfere with health where the way of transmission is through contact with individuals without realizing it so this virus is very deadly. In order to reduce the spread of this virus it is recommended that community mobility outside the home must be reduced by canceling community activities or by quarantine (lockdown).

The spread of Covid-19 does not only shake the world of health (health shock) but also gives shocks to the economy (economic shock) that is almost totally devoid of economic activities carried out by economic actors both household households (house hold) and company (firm) so that it affects the demand side, the supply side of goods and services and ultimately will affect the balance of the economy (market equilibrium). With the limitation of community mobility and activities - economic activities, in an effort to prevent the spread of this virus which is increasingly widespread, it has an impact on consumption activities and production and investment activities to decrease (economy contraction).