Post-Coronavirus Economic World: How Uncertain is the Future?
It was as early as December when economists worldwide had planned the policies for the year 2020 but little did they know about the calamity to hit. Though the business environment is considered dynamic, the world turned upside down due to the coronavirus, and so did the economic world. As we enter the third quarter of 2020, the question arises in Post-Coronavirus Economic World: How Uncertain is the Future?
There is a high level of uncertainty, considering the current recession. Both upside and downside risks surround the prospect. COVID-19 has hardly spared anyone. On the downside, further waves of coronavirus can weaken mobility and spending, which will rapidly decrease consumers’ living standards and financial position leading to debt distress. Moreover, geopolitical and trade tension might negatively impact international affairs.
However, a crisis like no other might have a recovery like no other.
On the brighter side, the vaccines and medicine industry might act as a light in the tunnel alongside support policies. Both of these factors can lead to a quicker resumption of economic activity. Furthermore, exceptional policies have benefitted economic recovery. This policy has succeeded in supporting livelihoods and preventing bankruptcies which will eventually aid the recovery.
The answer to Post-Coronavirus Economic World: How Uncertain is the Future is not complicated. Given the massive uncertainty, policymakers should be keen-eyed as the situation evolves. Fiscal and monetary policies should continue for now, especially in countries with high inflation. Managing health risks includes building health capacity, countrywide testing, and isolation to deal with new outbreaks.
Written by Syed Aleena Ammad Hussain
Managed and Edited by Javeria Qadeer