Five years on, the economic impact of Covid-19 lingers

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Five years after the World Health Organization (WHO) first described the spread of the Covade 19 Corona virus as a pandemic disease, its effects are still being felt on the global economy.

Covade -19 and its efforts to overcome the record government loans mobilized, targeted labor markets and changed consumer behavior. Inequality has increased, while remote work, digital payment and changes in travel samples have been tolerated.

Although an immediate shock has passed, the legacy of Covade 19 is renewing global economies and markets.

Here are some important effects.

Debt, inflation and interest rate

After the countries borrowed money for welfare and livelihood, the global government’s debt has increased by 12 %, which has seen a rapid increase in emerging markets.

The pandemic diseases gave rise to a high level of inflation, which proved to be a major concern in the 2024 US elections. Lockdown costs, fuel through official stimulation packages and labor and raw material shortages, inflation in many countries increased in 2022.

To meet rising prices, central banks have increased interest rates, though their intervention is widely different.

Sovereign credit ratings, which reflect a country’s ability to pay their debts, was minimized as the economies were shut down and governments borrowed huge amounts of extra loan to fill the holes left in public financial affairs.

Fitch rating data shows that the average global independent credit score is less than a quarter when pandemic disease began, reflecting the financial challenges that are worse than pandemic diseases, inflation and severe financial conditions.

For less wealthy emerging market countries, average half mark is low.

Low -credit rating usually translates into more costs to borrowing on international capital markets.

Labor and travel shifts

According to the World Bank, the pandemic diseases caused the loss of millions of jobs, the poor families and women were most affected.

As lockdown was ease, employment gained rapidly, but due to the increasing retail delivery sector, with a considerable change towards sectors like hospitality and logistics.

In 2020, women’s participation in the manpower declined, mostly due to more representation of women in severe affected sectors such as housing, food services and manufacturing, and the burden of children living home from school. However, statistics show that gender employment gaps have decreased slightly.

Travel and leisure habits also changed. Although people travel and eat in 2019, an increase in home -working homes has reduced travel to major cities like London.

In London, the use of both tubes and buses travels less than a million in one day than a lesser pandemic.

According to the World Airlines Body IATA, the airline’s sector was one of the $ 175 billion industry recording of wide losses in 2020.

Vaccination campaigns resulted in the termination of travel restrictions, allowing people to return to the planes. For 2025, IATA expects the industry to have a wide net profit of $ 36.6 billion and a record 5.2 billion passengers.

But passengers will have to compete with hotel room prices, which are advancing inflation in many regions and stayed above 2019 levels.

According to the lighthouse platform data, in the first half of 2023, the continent in the southern hemisphere, which includes smaller countries like Australia and Tonga and Fiji, saw the highest price increase in the same period of 2019, followed by the highest price increase in North America, Latin America and Europe.

Despite the slightest fluctuations, there is little indication that global prices of the hotel will return to premature principles.

In many countries, the rate of office spaces is also at a record height, which is the result of more remote and flexible work. In the United States, vacant posts in the central business districts increased the most, which is still clear today.

Starting in the digital world

The trends of new consumers manufactured during the lockdown globally, because home -binding users often had no choice but to buy online. This has increased online purchases from 2020, which has been strengthened after that.

Analysts say online sales in Europe have increased as well as sales, as retailers invest in physical shops to mobilize both online and offline sales.

The market research company Euromonator data shows that, the space measured in the square meter, has increased from 2022 to 2023, from about 1.0 1.0 percent, which should increase by 2028.

Vaccine -making pharmaceutical companies as well as shares of digital and delivery firms during pandemic diseases benefited during pandemic diseases.

Five years later, some of the beneficiaries have lost most of their appeal, but others have gained lasting benefits as new markets have been enabled by digital shifts.

Despite the bursting of some bubbles and the elimination of the Crypto Exchange FTX, which released the industry, the price of bitcoin has increased by 1,233 % since December 2019, as people have considered new investment opportunities to reduce the risk of fluctuating market fluctuations.

With the home being trapped at home and more cash, people started investing even more, in December 2020, about 27 % of the total US equity trading from retail investors. Stock Broker TD AMRARED took the largest piece of cake before the Charles Schwab deal in a $ 26 billion contract.

Another platform that gained popularity during the retail trading boom of 2021 is Robin Hood, which became a choice platform for people to pump money in MEME stock.