Several COVID-19 vaccinations are rolling out in different nations in 2021, and the nations of the world are ready to battle the effects of the Pandemic to restore normalcy this year. Now, the next question is, will the economy of the world make a comeback this year? When it comes to global economic trends, the market still is uncertain with a lot of unpredictability as novel strains of the virus are emerging in some places; however, some positive trends are surfacing, bringing in the hope that the global economy is slowly on its road to recovery.
Steven Fisackerly – What are these trends for 2021?
Steven Fisackerly is a retiree from Long Island who studies global economic trends. When he speaks about the global economic trends to watch out for in 2021, he emphasizes the following key points-
- The GDP of the global economy is closing on a positive note. It is actually on a pre-pandemic high now as the output of the world has nearly climbed to about 98.7% of last year’s February 2020 peak.
- Due to lockdowns and restrictions on physical mobility, there are estimates that consumers saved more in 2020.
- As the coronavirus Pandemic wane’s adverse effects, there is the anticipation of pent-up demand for goods and services to be expected.
- There is tranquility when it comes to monetary conditions. Inflation and interest rates are still low despite the disperse of massive deficit-financial relief packages.
- Recovery of the workforce still remains low. There are about 10 million jobs that are short of full-manpower employment.
- Equity investors are optimistic that the disruptions in the coronavirus will fade soon, permitting digitalization and globalization to resume resulting in the rise of profits and sales in 2021.
The return of customer spending
The worst-hit industries of the Pandemic have been the sectors dealing with travel, restaurant, and hospitality. There is hope that consumers will again step out in the market and spend more in 2021 as a pent-up consumer demand due to home quarantine and social distancing has grown exponentially. In January 2021, there has been a surge in retail sales across the globe, and it has been above general expectations in some nations. The good news is some areas have recorded lower infections and rapid distribution of vaccinations. Hospitalizations are less, and if this trend continues, there is wide anticipation the market will reopen soon.
Steve Fisackerly says in the USA alone, the Federal Government’s stimulus packages have boosted a rise in real household incomes in 2020 by approximately 3.7 percent. This is definitely more than the figure last recorded in 2019. When it comes to real estate and equities, their market values rose. However, there were few buyers and investors. 2020 has sure been a turbulent year with unemployment being at its highest and remote workforce still working from their homes. However, he says it is too early to predict anything with certainty. One needs to wait and watch to see what turns the economy takes as the year rolls on!