The Coronavirus pandemic of 2020 has had a severe impact on the global economy. It’s affected how we do business, how we travel, and what we perceive as valuable. Companies have closed in huge numbers, and millions of people worldwide have lost their jobs.
COVID-19 has forced the world to rethink its economic activities, but how significant of an impact has it had?
Rumblings of Recession
The pandemic is likely to plunge most countries around the world into a recession, with the per capita income decreasing at levels not seen since 1870. Even advanced economies are expected to shrink within the region of 7%.
It will spill over to emerging economies, and developing countries will feel the impact with a contraction of 2.5%. No nation is untouched by these fluctuations, and the overall forecast for global economic growth has gone down from 3.0% to 2.4%.
It means that the more prosperous nations will have to work harder to catch up on the dent the pandemic has caused. For developing countries, it’s a lot more serious. Some were already in a local economic crisis with high unemployment rates and little financial growth.
A further downturn in the economy only worsens the situation and could force some into a depression that will take years to get under control.
Something that the lockdown and economic downturn have done is forced people to rethink their prospects. Even some of the most educated and experienced professionals have found themselves stranded in limbo.
Having lost their jobs, and with the economy shut down, it’s made it impossible to find meaningful employment. In many first world countries, the government has stepped up and offered support to people who have lost their source of income.
Some of the support programs provide features such as emergency wage subsidies and debt deferral arrangements. Experts believe that once the crisis is over, the economy will recover at a rapid rate.
The problem is that this will take time, and you’ll have experienced the unemployed and the young hopefuls vying for the same position due to fewer jobs being available. There is a silver lining in this bleak storm. Due to the forced circumstances, entrepreneurship has been given a boost.
Forced to find alternative means of earning an income, innovation has become the mother of necessity. Small owner run enterprises have sprung up to provide services lacking due to the forced closure of borders and trade lines.
Without a doubt, 2020 will be known for many years to come as a killer, figuratively and literally. Entire economies have crashed, and so have the livelihoods of the people who make it work.
The world’s health had to take precedence over business and trade, which created unemployment and despair. Fortunately, it’s not all doom and gloom. Humans are resilient, and with the loss of livelihood came the entrepreneur’s rise.
It gives hope that in a post-COVID-19 world, this new breed of go-getters will restore our economic dignity and the right to earn a living.