The impact of Covid-19 on the World economies has left many business owners bewildered, while the world populace groans in poverty.
It’s quite interesting how most of the World Economies are bouncing back to a recovery path, which is what we will be looking at in this article.
The Covid-19 pandemic reached every corner of the world, infecting more than 90 million and, so far, has killed close to 2 million people worldwide.
Hope For The World Economies:
The imposition of lockdowns and quarantine measures in the region, first introduced around April and then, after some loosening reintroduced later in the year, caused far-reaching disruptions of businesses to travel ban and many other measures that were taken all impacted the world economies in negative ways.
For the first time since the pandemic began, there is hope for a brighter future., as progress with vaccines and treatment have lifted expectations and the uncertainty that surrounded 2020 has been lifted.
Over the past few weeks, three COVID-19 vaccines have been found to be safe and effective in their clinical trials, including one developed by AstraZeneca and the University of Oxford, which has so far witnessed the maximum interest from governments and organizations worldwide.
The Covid-19 All-round Impact Confirmed:
When 2020 saw planes grounded and people staying home, even oil majors like BP felt a real threat from the world getting serious about climate.
The International Monetary Fund (IMF) confirmed the fact that the Covid-19 pandemic had instigated a global economic downturn the likes of which the world has not experienced since the Great Depression.
A view that is supported by the latest figures from the European Commission, which has forecast that the GDP of EU countries contracted by 7.5% in 2020.
World Economies Recovery Path:
According to the Morgan Stanley economic research team, the US economy, for its part, has stayed resilient through the pandemic. Consumer spending has nearly returned to pre-COVID-19 levels, while average personal incomes of U.S. Households surpassed pre-pandemic levels in September 2020, even after the first round of fiscal support expired.
The U.S. economy is improving after the destruction caused by the COVID-19 pandemic. This cautiously positive outlook is based on experts’ reviews of the Country’s key economic indicators, which include gross domestic product (GDP), unemployment, and inflation.
The US GDP is now expected to grow by 6.4% this year, up from the previous estimate of 5.9%, the American multinational investment bank and financial services company affirmed.
In Europe, where many countries began reimposing COVID-19 restrictions in October last year as new infection rates climbed, growth is expected to resume as economies reopen.
The economics team forecasts 5% GDP growth in 2021, which is slightly below the consensus estimate. The team’s 2022 outlook for the eurozone, however, pegs GDP growth at 3.9%, versus a consensus estimate of 2.8%. “With ongoing policy support, the initial rebound should turn into a robust recovery.
One notable exception, though, is the UK, where Brexit could slow the pace of recovery.
Asian Economies: Asian economies are emerging as clear winners in the race to a full recovery, aided by demand from Western shoppers and success in containing Covid-19, which has helped the region keep its factories humming.
China remains on track to grow nearly 2% this year, the most of any major economy, while the world is expected to contract by 4.4% and the U.S. by 4.3%, according to the International Monetary Fund.
Other Asian economies are close behind China: Vietnam is expected to grow 1.6%, Taiwan is expected to be flat from a year earlier and South Korea is forecast to contract modestly at 1.9%.
But they also derive an especially large part of their growth from exports of manufactured goods to the rest of the world, especially the U.S. and Europe. Asian economies are among the largest producers of laptops, communication equipment, TVs and other household goods that have experienced surges in demand even after the pandemic worst period.
Africa Economies: The World Bank has called for rapid COVID-19 action, including a faster vaccination process, to limit the damage to global growth in 2021 more especially the Africa nations’ economies.
One of the reasons for Africa’s “shallower” growth than the global 2021 forecast of 5.4% is that Sub Saharan Africa countries have fewer and smaller policy options than more advanced economies. This is why the region’s largest economies Angola, Nigeria and South Africa will not see a real GDP growth return to pre-crisis levels till 2023 or 2024.
The EU Next Generation Plan For Member States:
On 21 July 2020, after four days of negotiation, the European Council agreed to a massive recovery fund of 750 billion € in 2018 constant prices branded Next Generation EU (NGEU) in order to support member states hit by the COVID-19 pandemic.
The NGEU fund goes over the years 2021–2023 and will be tied to the regular 2021–2027 budget of the EU (MFF). The comprehensive packages of NGEU and MFF will reach the size of 1824.3 billion €.
The NGEU deal is unprecedented as for the first time in its history, the EU will issue European sovereign bonds to allocate grants and loans to its member states paying it off by generating own resources through direct taxation, considered the first step into a fiscal integration in Europe.
Summary: The COVID-19 crisis has inflicted multiple shocks upon the economies of the Commonwealth of Independent
States (CIS) and Georgia. It has negatively impacted foreign exchange earnings derived from commodity exports, tourism and remittances.
Public financing needs relating to funding the crisis response have also increased, while revenues have slumped; consequently, access to external financing has become ever more critical for many of the countries in the region.
However, external financing needs vary from region to region, reflecting the heterogeneity in economic structures and external trade composition.
And for some countries, external financing needs have been already large prior to the crisis.
It’s good to know that most of the World Economies are bouncing back from the Covid-19 pandemic economic effect.
Challenges Of Lots of developing countries are still struggling to cope with the economic crisis caused by the pandemic and as well dealing with the latest cases of the New Covid-19 Variant called B.1.1.7 which experts say spreads more easily and quickly than other variants of the Virus.
Note: Do follow all the safety measures outlined by WHO and CDC and make sure you don’t make unhealthy lifestyle choices.
Visit your doctor if you feel sick.
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