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COVID-19: Economy, Mental Health and the Presence of Racial Hatred

Aakanksha Manjunath

Without a doubt, the pandemic has heightened racism and racialised street harassment in Australia, especially against the Asian community. However, this racism is not new and has been occurring for centuries. Join Psychologist Anushka Phal as she highlights the impact of COVID-19 on the economy, how it has increased racism and its impact on the mental health of marginalised communities.

In just four more months, 2022 will commence. It’s impossible to believe that this year is coming to an end when it barely feels like we have lived through a new year. 2021 has felt like an elongated version of 2020, with splashes of normality, freedom and hope throughout this pandemic ridden year. Undoubtedly, the COVID-19 pandemic has impacted individuals globally as a health risk level, on a physical and psychological level. Undoubtedly, the COVID-19 pandemic has impacted individuals globally as a health risk, on a physical and psychological level. This is evident through the mental health epidemic that has consequently occurred. Covid-19 related lockdowns which have caused a significant change in lifestyle have led to increased stress, confusion and anger.

Moreover, COVID-19 has had an adverse effect on the global economy, with a 77% reduction in revenue for businesses and loss of over 870,000 jobs in Australia over the past year alone. Financial stress has become increasingly common and have had a strong impact on the mental health of Australians. Additionally, the collective experience of home isolation over the past year and half, has had detrimental effects on social support and loneliness for individuals. This time has been especially difficult for individuals with family who live or are stuck overseas. A sense of collective hopelessness and disparity has been commonplace across 2020/21. The mundane effects of working from home, feeling the need to be more productive due to increased spare time, lack of routine and normality in life has also led to burnout. The impact of COVID-19 has been vast. Recent statistics by the World Health Organisation indicate increase in new mental illnesses and exacerbation of existing mental health issues amongst the general population. This includes increases in anxiety and depression (31%), substance misuse (13%), suicide (11%) and trauma/stressor related issues (26%). 

In addition to this, for the Asian Australian communities one major side effect of the global pandemic has been an increase in racism. While the racial hatred was initially focused on the Chinese community during the beginning of the pandemic due to the origins of COVID-19, with the introduction of the Delta Variant, first detected in India, racial hatred quickly spread widely to other Asian Australian communities. A 2021 survey by the Asian Australian Alliance recorded 541 racist incidents in the past year and a half, with nine in 10 respondents attributing their experiences to COVID-19 related racism.  Racial hatred during this time has led to fear, anger and worry among Asian Australian communities. Research indicates that ethnic and race-based discrimination is a major contributor to stress, depression and anxiety, with a probable link to other issues. There is also emerging research linking ethnic and race-based discrimination to a decline in physical health such as increased blood pressure.


During such tried times there is not much that we have control over, we cannot stop the virus, we are under strict restrictions, life as we know it has changed. For the most part people are doing what is within their control. While the healthier end of this spectrum looks a lot like self-care, providing social support to others, engaging in healthy coping mechanisms, others are choosing to engage in more unconventional and unhealthy control mechanisms. Racial hatred is one such example. It is easier to be angry or frustrated, put blame on, attack verbally or physically and complain about a group of people than it is over COVID-19 itself.  For the Asian Australian population, it is an added stress to their mental health during an already difficult time. 


Ultimately, the accumulation of all these factors during the coronavirus pandemic have led to the rise of depression and anxiety. Furthermore, seeking professional help during this period of time is imperative in creating strong coping strategies to be able to get through this turbulence.  Resources for mental health support include: 


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Anushka Phal is a General Psychologist based in Melbourne, Australia with a passion for cultural and Educational & Developmental Psychology. Along with being a school psychologist, Anushka runs her own private practice, Umeed Psychology, which aims to support Asian Australians and Pacific Islanders. Anushka is also a Co-Founder of the Shore Project Podcast, which highlights migrant experiences.