Affecting almost every country in the world, the Coronavirus pandemic has left the national economies and businesses calculating the expenses since the government is struggling with new lockdown rules to stop the spread of the virus. Even though there has been the development of new vacancies, however, many people are still questioning how recovery would look like.
Global Shares in Flux
Significant variations in the stock market are capable of impacting the value of pensions and individual saving accounts. The Dow Jones Industrial Average, FTSE, and Nikkei saw huge falls as the Covid-19 cases were growing in the first months of the pandemic. The Asian and US stock markets recovered when there was an announcement of the first vaccine coming out in November, but despite it, the FTSE was still in the negative territory dropping 14.3% in 2020, its poorest performance since 2008.
In response to tackle the situation, central banks in many countries including the UK did cut interest rates to make borrowing more affordable as well as to encourage spending to boost the economy.
Some of the markets in the January of this year have somewhat recovered, but this is a common tendency identified as the “January effect”. Many are concerned about the likelihood of further lockdowns and delays in vaccination programs which can trigger more market volatility this year.
A Very Difficult Year for Job Seekers
There are many people who have lost their jobs or have seen their salaries cut and the unemployment rates have risen across major economies. In the US alone the proportion of people out of work went a yearly total of 8.9%, according to the International Monetary Fund (IMF), indicating an ending to a decade of job expansion.
There are millions of people who have been placed on government-supported job retention plans. And talking about tourism and hospitality these two industries have come to a near halt.
In many countries, the number of new job opportunities is very slim as well. In Australia, job vacancies have retained the same level of 2019, but they are staggering in UK, Spain, France, and several other countries.
Many Countries are Right Now in Recession
If the economy grows that means more wealth as well as more new job opportunities. The growth of the economy is estimated by the Gross Domestic Product (GDP) as well as the value of assets and services produced over 3 months period or a year. The IMF concludes that the world economy shrunk by 4.4% in 2020. The IMF calls this the worst since the Great Depression of the 1930s.
China is the only major economy that grew at a growth of 2.3% last year. However, IMF has estimated global growth of 5.2% in 2021 as it expects that this will be primarily contributed by the countries like China and India forecasting to grow at the rate of 8.8% and 8.2% respectively. But on the other hand, economic recovery in countries hardest hit by the pandemic such as UK, Italy, is expected to be very slow.