What Will Be the Picture of the World Economy by the End of 2020, after COVID-19 Pandemic Settles?

The year 2020 has shattered the entire world ever since the widespread outbreak of the coronavirus pandemic. The World Health Organization (WHO) recognized the spread of COVID-19 disease as a pandemic on 11 March 2020 as South Korea, Iran, Italy, and Japan showed a steep surge in the number of COVID-19 cases. Ever since the outbreak of this deadly virus, life across the world has come to a sudden halt, thus leaving various nations worldwide in a turmoil.

The coronavirus disease, which causes a respiratory disorder called COVID-19, has forced schools to shut down, businesses to work remotely, and people to stay inside their homes in order to curtail the spread of the virus. The early quarantine period was like a forfeit to many people; however, with time people began to blend together and adjust to a new way of life under quarantine.

The Global Economy is in Serious Threat!

The year 2020 is not over yet and the COVID-19 pandemic has upturned almost every sector of the world. One of the most terrifying effect of the coronavirus pandemic was the severe devastation of the world economy. Fall of business revenues, pay-cuts, and job losses on an enormous scale became a common thing in the mid-2020 amidst the crisis. However, when is all this going to end? The question is still a mystery, as there is no ray of hope yet.

Almost everyone has been banking hopes on the invention of an effective vaccine against the deadly COVID-19 virus ever since its outbreak, but unluckily, nothing positive seems around the corner. Even if any new vaccine effectively passes all obligatory tests, it is not going to be available on a very huge scale, at least for the time being.

The Fear of another Possible Wave of the COVID-19 Disease

People were impatiently waiting for a vaccine; however, several experts predicted that another wave of the deadly virus is soon going to hit the world. This is terrifying not only from the health outlook but evidently, from a financial outlook as well—as this might massively affect the world economy.

The global economy is facing novel threats during the pandemic because even the government of many nations failed to offer adequate support after the second wave of the COVID-19. The hope of the rebounding of the world economy from the losses due to the COVID-19 crisis is fading and setting up an ambiguous end to this crisis.

Numerous concerns were raised after the second wave of the COVID-19. The extensive spread of the deadly virus has triggered many new challenges for the government, while the wait for the development of the vaccine still continues. Moreover, government’s support for furloughed employees and bank cessations on loan repayments are set to terminate. Tensions between the U.S. and China might get worse in the coming presidential election, which held in November and also weaken industries and businesses.

Governments’ Supportive Policies are about to End Soon

With an aim to ease the burden on the general public, various governments had announced certain supportive polices which are now about to end soon. These polices involved bank halts on loan payments, relief packages to distressed labors, etc. As per expert economists, the world needs more substantial motivational packages at this phase of the pandemic, but information from several economists shows that government bodies are planning to end all such supportive polices. This has imposed a serious concern for the world economy because businesses have still not resumed to normal functioning and haven’t recuperated all the incurred losses and are not even showing any signs of retrieval in the coming months.

As per the Asian Development Bank and the International Labour Organization, about 4.1 million Indian youths have lost their jobs during the pandemic crisis. Several top economists have revealed that introducing new jobs can lead the world economy in the right direction; however it might result in a pointless idea until there is some economic motivation in the economy to get back to normal.

Will the World Economy Bounce Back in the Future?

Economists believe that for getting a better idea of the financial circumstances, we must concentrate on the long-term conditions which are presently ‘not looking good’. Even though countries are trying to offer their finest efforts for combating the deadly COVID-19, everything is being outshined due to the continuous spread of the COVID-19 disease. For bringing the economies back to normal, companies have to bounce back and function to their fullest potential at the earliest.

In addition, for reducing the economic burden, a substantial percentage of the population requires to be vaccinated which might not be possible even in the coming years. In a nutshell, there are numerous concerns that are delaying the retrieval of several economies across the globe during the COVID-19 pandemic.

About the Author(s)

Princy A. J

Princy holds a bachelor’s degree in Civil Engineering from the prestigious Tamil Nadu Dr. M.G.R. University at Chennai, India. After a successful academic record, she pursued her passion for writing. A thorough professional and enthusiastic writer, she enjoys writing on various categories and advancements in the global industries. She plays an instrumental role in writing about current updates, news, blogs, and trends.