The Impact of COVID-19 Pandemic PDF

Running head: SOCIOLOGY 1
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SOCIOLOGY 2
Executive summary
The impact of COVID-19 pandemics in Ontario is felt in the economic sector of the
province. The paper examines the impact of COVID-19 pandemics in Canada with a focus on
Ontario citing various proposals and institutions that can be engaged in reducing the impact of
the disease. The effect of COVID-19 pandemics is far reached in Ontario and the wider Canadian
economy. The impact of COVID-19 pandemics has affected most parts of the country within
many provinces affected by the disease. The paper provides a background of the COVID-19
pandemics in Ontario highlighting impact since the first reported case. The paper examines the
impact of COVID-19 pandemics under the category of short term impact giving anticipated
medium term and long term impact. Paper provides some proposals that enable reducing the
impact of COVID-19 pandemics on the economics of Ontario. Another key area that the paper
also gives is the recommendations that can be used to cushion the economy against the impact of
COVID-19 pandemics. The paper concludes by identifying the significance of the effects of
COVID-19 pandemics on the economics of Ontario.

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Table of Contents
1. ntrodu tionI c .........................................................................................................................................3
2. a groundB ck ..........................................................................................................................................3
3. a t of C on e ono i sImp c OVID-19 c m c ......................................................................................................4
ort ter i a t of C on e ono i s3.1 Sh m mp c OVID-19 c m c ..................................................................................4
a t of t e C ande i s on t e i roe ono i s of ntarioImp c h OVID-19 p m c h m c c m c O .............................................4
a t of C ande i s on t e a roe ono i s of ntarioImp c OVID-19 p m c h m c c m c O ..................................................5
Mediu ter i a t of C3.2 m- m mp c OVID-19....................................................................................................7
ong ter i a t of C3.3 L m mp c OVID-19..........................................................................................................7
4. ro osalsP p .............................................................................................................................................8
Cus ioning of t e e ono against t e i a t of C ande i s4.1 h h c my h mp c OVID-19 p m c ..........................................8
nstitutions engaged4.2 I ........................................................................................................................10
5. e o endationsR c mm .............................................................................................................................10
Con lusionc .................................................................................................................................................11
eferen eR c ..................................................................................................................................................12

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1. Introduction
The COVID-19 pandemics have both financial and economic effects on the lives of
people within Ontario and Canada. Since the outbreak of COVID-19 pandemics in Canada report
in late December 2020 the disease has spread to more than 157 countries. Canada is one of the
countries affected by the disease since the reporting of the first case in January 2020. Ontario
province has also suffered from the impact of COVID-19 pandemics that cut across health,
economics, education and security. Economics of the province is highly affected by the COVID-
19 pandemics causing short term, medium-term and long term impacts. Businesses have been
affected by the disease due to a reduction in the flow of commodities in and outside the country.
The government reacted through some measures to curb the further spread of the diseases. Some
of these measures have a negative implication on economics. Some proposals can help curb the
spread of the disease and impact of the COVID-19 pandemics on economics in Ontario. This
paper, therefore, explores the short term impact of COVID-19 pandemics citing possible medium
and long term impact of COVID-19 pandemics on Ontario.
2. Background
COVID-19 pandemics have hit hard most countries throughout the world and Canada is
also not spared. The disease that was first reported in China late December has since claim live
of thousands and infected hundreds of thousands. The COVID-19 pandemics were first reported
in Canada on 25th January 2020. Different governments have reacted or responded to the
situation through strict measures. The majority of measures taken by the government aims at
reducing the spread of the disease and treatment of the infected people (Levine & McKibbin,
2020). Some of the measures that have been taken by the government to reduce infection are
restrictions on travelling, movement of commodities in and out of the country, increasing social

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distance and personal hygiene. The measures that were taken by the government to reduce
infection has so far increased the impact of the COVID-19 pandemics on the economics of
Ontario. For instance, restriction on travelling and transportation has reduced the supply of
unfinished products mostly originating from China. This has a huge impact on the economics of
Ontario and Canada in general. The impact of COVID-19 pandemics has long term, medium-
term and long term impacts on the economics of Ontario (Baldwin & Di Mauro, 2020).
3. Impact of COVID-19 on economics
3.1 Short term impact of COVID-19 on economics
The impact of COVID-19 pandemics can be viewed through the impact of the disease on
both microeconomics and macroeconomics.
Impact of the COVID-19 pandemics on the microeconomics of Ontario
The impact of COVID-19 pandemics on microeconomics can be viewed based on various
and crucial sectors of the economy. Some of the most hard-hit agents of economics are supply
chain, transportation, mining and health sector of the economics (Mankiw, 2014).
The supply chain of Ontario has been disrupted due to the effects of COVID-19
pandemics. The supply chain has been connected to other countries mostly China where raw
materials from industries have been from. Most of the products that have been disrupted are
majorly unfinished good that is supplied from China. China was the epicentre of the disease
leading restriction of many materials from the country. Unfinished goods from China account for
10% and these products are currently not shipped into the country thereby disrupting the supply
chain. The supply chain was also disrupted through government restrictions on non-essential

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commodities. Some other 4% of unfinished products are also supplied from Italy, South Korea
and Japan (Krugman & Wells, 2012).
Mining, quarrying and oil extraction has been affected by the impact of COVID-19
pandemics since January 2020. This has affected the prices of fuels and other mineral related
commodities. Government restriction to curb the spread of the disease within the country and
across borders has resulted in limited mining activities leading to low economic growth. Since
the outbreak of the COVID-19 pandemics, the prices of oil and oil product has fluctuated in the
international and this will affect domestic oil prices in Ontario Canada (Maziarz, 2020).
The effects of COVID-19 pandemics are also felt in the transport industry is a major
stimulus of economic growth. The transport industry has been affected both at the local and
international travel. This has also affected international air travel as this was to reduce the spread
of disease. The transport industry has been a major contributor to the economics of Ontario and
Canada in general. Restricting transportation means reducing both incomes earned from
transport, transportation of commodities and this affects the economics of the country. The
government reported a decrease in transport by 2.7 percent since the government restriction on
non-essential transportation (Barro, 2015).
Impact of COVID-19 pandemics on the macroeconomics of Ontario
The impact of COVID-19 pandemics is great when viewed from the perspective of the
whole economics of Ontario. Firstly, the impact of COVID-19 has been great on the economics
of Ontario that affects various aspects of the economy. The short term impact of COVID-19
pandemics is felt in the economics of Ontario since March when the pandemics were great.
When understanding the impact of COVID-19 pandemics on the economics of Ontario provinces

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of Canada, one needs to understand various factors that form part of economics. Some of these
are transportation, supply chain, mining and health sector of the economy (Tunney & Hall,
2020).
Secondly, the impact of COVID-19 pandemics is great and when the growth rate of the
economy is determined over the past two months, the result is worrying. The determination of
the growth rate in January 2020 when the outbreak was reported shown the growth was already
0.1 percent showing some decline. This was coupled with a decline in the movement of various
products and services leading to an overall growth rate throughout the country (WHO 2020).
Thirdly, the decline in trade within the country and across the borders reduces the
economic growth since the onset of COVID-19 pandemics. The impact of COVID-19 pandemics
is affecting transportation and warehousing which are the two most crucial factors affecting
trade. The impact of restricting non-essential transportation across the border resulted in a
decline of 1.7 percent (ILO 2018).
The stock market has also been impacted by the effects of COVID-19 pandemics in
Ontario with the country stock market more than 10% since February 2020. The stock market
values have been fluctuating since the onset of COVID-19 pandemics. The impact on the market
is expected to continue changing. The impact is also influenced by the impact of war between
Russia and Saudi Arabia (Lee & Cho, 2016).
3.2 Medium-term impact of COVID-19
The medium-term impact of COVID-19 pandemics on economics has been felt in some
areas across Ontario. The medium-impact is realized on employment, the decline in economic

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growth. The economic growth country is also expected to slow for the short term affecting most
economic agents. Slow economic growth is another key impact of COVID-19 pandemics that
will be expected within the medium-term and to the long term. The fluctuation of prices of
product and stock market value are some of the medium-term impacts of COVID-19 pandemics.
Regulation of prices of products will enable cushioning of the economy against such fluctuation.
The layoff of workers is an important medium-term impact of COVID-19 pandemics as many
companies prepare to freeze hiring and also reduce the number of the worker. For instance,
WestJet is one of the companies that announce it will reduce the workforce capacity by 12%
(WHO 2020).
3.3 Long term impact of COVID-19
The long term impact of COVID-19 pandemics on the economics of Ontario is visible
from the short term impact of the disease on economics. Slow economic growth is anticipated
for the next few years and this is most likely to result in depression. The impact COVID-19
pandemics will be felt at every level of economy and the worst is the limited reduction of the
effects of the disease in the global sphere. This will impact the growth of every aspect of the
economy given the fact that current strategies have been put in place to cushion the economy.
Since the onset of COVID-19 pandemics, every sector of the economy has a decline in growth
with some registering less than 1 percent growth. When translated into the whole economic
growth the impact of COVID-19 pandemics will be greater than imagined (Velavan & Meyer,
2020).

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4. Proposals
4.1 Cushioning of the economy against the impact of COVID-19
pandemics
There are some proposals to help reduce the impact of COVID-19 pandemics on the
economics of Ontario. Economic stabilization remains an important strategy that will reduce the
impact of COVID-19 pandemics on the economy. Firstly, the setting of economic priorities that
focus on reducing the impact of COVID-19 pandemics on the economy is important to cushion
the economy against the impact of COVID-19 pandemics. The government setting priorities that
will form focus at this time of battling with COVID-19 pandemics is important for protecting the
economy against depression. Priorities that form a crucial aspect for the government containment
of the impact of the disease has the potential of reducing the impact (OECD 2020).
Secondly, re-allocation of resources to those sectors of the economy that is most likely to
be affected by the disease. The governments need to re-allocate resources to essential agents of
the economy to reduce the impact of various restrictions that have been placed by the
government. This will also enable reducing the impact of COVID-19 pandemics on hard-hit
sectors such as health. Allocation of financial resources to government institutions to cushion the
economics against any labour challenges. As many companies are reducing the number of
workers, the government allocation of resources increases the chance of the economy declining
in growth (Ledwith & Ciancio, 2012).
Regulation of prices of essential commodities is another key aspect that will enable the
government to reduce the impact of COVID-19 pandemics on economics. Regulations of prices
of oil and other oil product are key to reducing the impact of COVID-19 pandemics. The impact

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of fluctuation of the price of oil within the global platform the government involvement of
Ministry of Energy, Northern Development and Mines. Ministry of Energy, Northern
Development and Mines is another institution that will also be used to reduce the impact of
COVID-19 pandemics (McKibbin & Triggs, 2018). The institution will assist in the
determination of the price of oil to ensure that other sub-sectors of the economy are shielded
from economic shock. The price of oil has been fluctuating and is most likely to affects both the
manufacturing and transport industries. The institution is also regulating the mining sector to
ensure that the decline in mining is treated with the best way to reduce the impact of COVID-19
pandemics. Extraction of minerals and quarrying has been negatively affected by COVID-19
pandemics and the ministry needs to come up with some strategies to reduce the impact (Higher
Ground Harm Reduction, Reynolds Health Strategies, Harm Reduction Coalition, and Vital
Strategies, 2020).
Many different institutions will be involved or engaged to help respond to COVID-19
pandemics. Firstly, the Ministry of Health is a critical aspect of the response to COVID-19
pandemics since the institution is responsible for monitoring, treatment and curbing the spread of
COVID-19. The health department plays an important role in the detection of infections and
treating people infected. The health department reduces shock felt in the health systems across
Ontario. The ministry has also task to come up with various health coverage and payment hence
reducing the financial implication COVID-19 on the economics of Ontario. The ministry of
health is also involved in the regulation of operations of health institutions to reduce the
fluctuation in the cost of health services throughout the province. Ministry of health also controls
the price of various health supplies meant for affecting treating and detecting infections
(Cartwright & Hardie, 2012).

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4.2 Institutions engaged
Ministry of Economic Development is another government institution that largely takes
part in the regulation of economic growth within Ontario. The ministry play role in setting and
monitoring economic growth to ensure that the province has stabilized economic growth.
Besides, the institution is also tasked with the role of stimulating positive economic growth.
Regulation of various economic activities and prices of essential commodities to ensure there is
no economic shock. The setting of interest rates for various institutions such as the banking
system to help reduce the impact of COVID-19 economic growth. The ministry of economic
development together with financial ministry regulates the fiscal policies of the province.
Taxation together with economic growth regulation enable stabilization of the economy within
Ontario (Grinin, Korotayev & Tausch, 2016).
Ministry of finance is another institution that will be engaged to regulate economic
growth and fiscal policies. Taxation has the impact of economics that include the impact on
labour, cost of commodities and benefit plans. The ministry of finance is supposed to determine
the taxation in the time of COVID-19 pandemics to reduce labour costs and working conditions
within the country. Also, taxation on various sectors of the economy if not regulated may result
in poor growth of those sectors (King, 2018).
5. Recommendations
In light of the impact of COVID-19 pandemics in the economics of Ontario, some
recommendations will ensure the government reduces the impact of COVID-19 pandemics.
Firstly, the government should stabilize prices of products especially oil and oil products to
reduce the impact of COVID-19 pandemics on economics. This involves engaging ministries of

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energy, economic development and finance. Secondly, reducing the spread of the disease and
putting more measures to reduce the spread of the disease will enable the impact of the disease
on economics. Thirdly, the involvement of various agencies in fighting the economic impact of
COVID-19 pandemics is another key consideration that the government needs to make. The
government needs to use a multiagency approach to ensure that each agent of economics is
brought together in curbing the impact (ITPC 2020).
Conclusion
In conclusion, the impact of COVID-19 pandemics is detrimental to the economics of
Ontario. The impact of COVID-19 pandemics on economics has affected various agents of the
economy and need further measures to reduce the impact. There is some measure to help reduce
the impact of COVID-19 pandemics on the economics of Ontario. This also involves engaging
various institutions within the government sphere to help reduce the impact of COVID-19
pandemics on economics.

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