The economic uncertainties occasioned by the coronavirus induced-recession will see many economies’ real gross domestic product (GDP) plunged by $3.94 trillion in 2020, statistical data compiled and presented by BuyShares show.
The statistic also shows ten countries, which will be impacted the most, will cumulatively lose $696.56 billion in real GDP due to the pandemic. And as projected, the pandemic has elicited massive losses in different sectors of these economies already, which can be reflected in metrics like the real gross domestic product.
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According to the research accessed by Business A.M., the United States will be the biggest loser at $174.68 billion, followed by Japan and the United Kingdom in second and third positions on the log with $86.78 billion and $74 billion respectively. South Korea will be the tenth most impacted nation with a loss of $3.76 billion. Elsewhere, China is the only country to come into sight with a positive growth projection of 1.8 per cent or a $51.12 billion gain in real GDP by the end of 2020.
The global economy begins recovery with lifting of containment measures
Most global economies were stalled during the pandemic due to containment measures like countrywide shutdowns. This led to economies going into a sudden shock with global trade experiencing a slowdown while labour markets saw massive job losses. Thus, the decrease in real GDP is also driven by a slump in consumption and investment. On the other hand, the dive in real GDP could have been shoddier if some governments had not intervened to moderately counteract the negative contributions, the report stated.
However the case, the economic projections stay uncertain as they basically depend on the evolution of the pandemic and measures put in place to control the crisis. On the other hand, with a number of countries like the United States faced with a second wave of the pandemic, they might revert to severe control measures like shutdowns to slow down the recovery. However, it is fundamentally expected that most governments will be all set for erratic occurrences locally, and give way for targeted local containment strategies.
China’s economy in positive recovery despite being Covid-19 epicentre globally
As the rest of the world find solutions in their struggle to contain the virus, China, despite being the virus’s epicentre has benefitted from the pandemic, while its economy has taken off after the containment measures adopted began to pay off. Remarkably, the country is witnessing a boost in local consumption.
Furthermore, the leading global manufacturer has seen most companies resume normal operations in China; now exporting consumer electronics, personal protection equipment, and other goods, which are in high demand during the pandemic. Also, China has been able to create jobs with fewer imports into the country.