The world wasn’t ready for a pandemic and some of the strongest businesses in the world were forced into bankruptcies. The economic activity came to a standstill across the globe and while things are slowly returning back to normal experts predict that the world won’t be reaching the pre-pandemic levels anytime before 2024.
There isn’t enough data available as it is the first pandemic in a century and the world economic face is totally different from what it was back in 1918 when the world faced the influenza pandemic. Despite the technological development and a much stable health and economic structure, many countries are still facing new variants and waves of the COVID-19 virus and hence economic decline.
The virus has significantly impacted the employment landscape of the world and has forced humans into a very different kind of working environment.
Here are a few deviations and trends that the world economy faces post-pandemic.
Post-Pandemic Economic Trends
There have been very significant changes in the way the global economy functions, and these are impacting the daily lives of everyone. The best A Level Economics Tuition in Singapore will equip you with the necessary knowledge and techniques that you’ll need to keep up with the fast-changing world in the post-pandemic and will keep you up to speed with the rapidly changing economic landscape. This also helps you gain necessary insights that can help you ace your exam with the best grades.
Some of the top post-pandemic economic trends that you need to be aware of include:
The employment levels have gone down globally, and millions of individuals are no longer in employment because of the complex requirements and lack of IT literacy. Although work is shifting back to physical premises, some companies are sticking to remote work even in high-income economies. This is leading to a sharp decline in the aggregate demand worldwide and shrinkage of the global workforce. In the US alone, out of work people reached a total of 8.9% of the total workforce.
High Disregard for Sustainable/Green Projects
The sharp decline in aggregate demand has affected everyone. Be it the oil-driven economies of the Middle East or the manufacturing factories in Chine, all have faced the problems associated with low demand and most businesses have doubled back to conventional manufacturing/production methods. Experts predict that the 2050 vision of a green globe with no non-renewable usage is no longer achievable.
The adaption of electric vehicles has also seen a decline and so has the deployment of solar panels for electricity generation globally.
Experts predict that this can be changed and tackled easily with incentives that will drive up demand and motivate people to take up more sustainable projects to set the global economy back on track.
Rising Fuel Prices
The fuel prices have gone up significantly and are now as much as 3 times more expensive than before the pandemic hit us. Several factors are causing the upward trajectory of the prices and things like the flooding of coal mines in China, ban on Iranian oil, and reopening of the Asian and European economies are all playing a role in driving up the prices. This is because the demand is growing rapidly as economies reopen and supply can’t just keep up. If past experiences are taken into account, the shortage and rising prices won’t be going away any time soon.
Silicon Chip Shortage
The pandemic forced many businesses into closure but still, the demand for new appliances and devices that use micro conductors has refused to falter as smartphone sales have reached an all-time high. Although silicon is abundant, it might take a year or two before the supply again matches the demand.
The economic landscape is changing rapidly across the globe and learning about it is more important than ever before. The trends will definitely reverse in the near future but the global powers need to work closely to ensure smooth sailing into the uncertain post-pandemic future.