The spread of Covid-19 pandemic was ever faster than the world could imagine. The alarming speed infected millions, carrying the world economies to a standstill, causing largest of the economic shocks that the world ever saw.
The recession during this time was deepest across the globe and developing countries faced irreparable vulnerabilities. The focus shifted to public health systems and not much of the work of governments could be diverted to growth. Each country was engaged in countering the impacts that the coronavirus brought with it.
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But by the end of March 2021, there were no winning economies but there were only fewer losers in global economies. The world was on a recovery path by the third quarter of 2020 as the restrictions lifted.
But, the second wave of virus came to Western Europe earlier than expected during final quarter of 2020; it hit India hard by the end of first quarter of 2021, devastating the lives of people from around the country.
In other parts, the pressures went down due to the vaccine breakthroughs and better lockdown measures. Although the world is on the way back to normal they are counting the costs.
Stock Markets saw very big shifts and affected the value of individual savings accounts. Dow Jones, and the Nikkei,all saw huge falls while the covid was on rise after March 2020. By the year 2021 Asian and US stock markets recovered.
Central banks slashed interest rates to make borrowing cheaper, easy and revive the weakening markets. By the months April and May of 2021 set in, the negative impact of the outbreak gradually fell to taper off, only with the exception of a few countries like India and Taiwan. Asian markets were the ones affected the most during one year of pandemic.
An innumerable number of people lost jobs or saw income cuts during the pandemic as the companies struggled to cope up with the downsizing market demands.
According to ILO, “there was an extraordinary global employment loss in 2020 of 114 million jobs relative to 2019”.
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Although IMF predicted global growth of @5.2% in 2021, the only economy that grew was China, by 2.3%. The last year had harmed the poor and vulnerable to the maximum, and millions were pushed to poverty. The restrictions triggered a global crisis leading to the deepest global recession from the times of the Second World War.
Micro, small, and medium enterprises (MSMEs) of the countries came under intense pressure. Millions were left without meals, households were compelled to take harsh decisions on household spendings, lives and livelihoods were upset. While the virus is here to stay, effective treatments and vaccinations will facilitate transitions of post-pandemic economy
The travel industry was completely devastated due to pandemic. Business trips, holidays, and travel decisions were canceled by customers. Tighter restrictions during travel lead to a huge hit on the number of flights globally, and there is still not much of hope for recovery in this year.
Hospitality also remained shut for a very long period, with millions of jobs lost and companies going bankrupt. The forecast for 2021 was better, but by this time millions of dollars were lost. Travel and hospitality will take a long time to return to the normal pre-pandemic levels.
As the shoppers stayed at home, people preferred shopping online. Online shopping grew large in numbers. Bit brick and mortar, grocery shops, malls and retail stores did not see footfalls. Online market grew drastically, and there was a new baseline for e-commerce sales which will grow beyond expectations from here on.
The high street went in pressure calling for store closures. In near future government will have to take measures for the reinvention of high street in future. Research suggests that consumers will not be willing to visit stores any sooner, so companies are anxious about returning to the store model. Not many of the customers are willing to travel for shopping.
Billions of dollars are pledged on Covid-19 vaccine and treatment-related companies. Shares of some vaccine developing companies like Moderna, Novavax, and AstraZeneca shot up. The stringent lockdowns of April and May in 2020 lead to a steep 11% slump in drug sales.
Worst was the condition of anti-infectives and other acute segments because the visits to clinics and out-patient departments of hospitals shrank. In 2021, however, the pharmaceutical industry was prepared for the production and distribution of important drugs to battle the second wave of the pandemic.
As 2021 set in this became a winning industry as the vaccine doses were being distributed by this time and demand for other drugs also increased shooting up the sales.
All the nations and their governance mechanisms worldwide announced programmes for economic recovery. The global economic recovery began in the third quarter of 2021.
The countries began lifting restrictions. This was mainly due to vaccine breakthroughs and improved lockdown measures. 65% of the globe’s manufacturing and exports were hardest hit.
A lot of policies emphasized healthcare equipment, personal protective equipment (PPE), ventilators, and more. Panic buying increased due to the uncertainties. The supply chain was disrupted badly and the question of whether the supply chains will return to normal in recent times to come?
On a positive note, businesses can use this opportunity to build back. With the paradigm shifts in consumer expectations, businesses can do much better by tackling global issues. There is activism as brands are also taking social actions. Businesses now talk about purpose and responsibility rather than sustainability. This trend is not going to fade away any sooner.
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