Most sectors remain under lock and key, while those that are operational aren’t doing so at full capacity. The world is still very far from resuming ‘normalcy’.
The global economy has taken quite the hit from the pandemic and is yet to begin recovery.
Scotty Huss
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According to Scotty Huss, entrepreneur, real estate investor and philanthropist, the pandemic's effects will leave a lasting scar on the global economy. The pandemic has set many businesses back.
On the bright side, some businesses caught a break as a result of the global pandemic. However, Scotty states that the overall effect on the economy has been devastating. With almost every country in the world affected by COVID-19, a global recovery will take a while to get the world back to where it was.
Huss shares his insight on how the pandemic has affected the economy. He starts by highlighting the big shifts in stock markets. When the pandemic struck, global shares experienced huge falls, and they’ve been slow to stabilize.
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On the job-hunting front, the world now has an influx of job seekers, even more than before the pandemic, as many people have lost their sources of livelihood. According to Scotty, the increase in unemployment rates will stunt economies for a while, and it’s worse for job seekers as there are very limited opportunities.
Recession is another reality of the COVID-19 pandemic. Most countries are experiencing a recession. The IMF estimates a 4.4% global economic shrink, which is the worst since the Great Depression. It is a tough position for global economies to be in as this means higher costs of living and millions more unable to afford basic necessities.
The travel industry is practically at a standstill in several countries. Many airlines have been grounded for the better part of 2020 and going into 2021. Scotty says that every industry has been hit hard, and the rebuilding efforts can’t take off as the pandemic is still raging.
However, he says, all is not lost. Thanks to the digital age, many small businesses and people who’ve lost their jobs are turning their social platforms into business platforms. The recovery will be slow, but it will happen. Huss advises that now is a good time for entrepreneurs to build their business and take slow steps towards the process of recovery.
Looking at the global economy, it is hard to focus very long on the positives as the setbacks outweigh the accomplishments achieved.
