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    Current International Economic Problems

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    JOHAAN TOMY KALLANY 1940817
    The COVID-19 pandemic has caused a historic global recession by halting economic activity through widespread lockdowns. It has negatively impacted all countries and populations except China. A World Bank report estimates 88-115 million people will fall into extreme poverty by 2021 due to the pandemic's damage to inclusive growth. The U.S. unemployment rate rose dramatically, with long-term unemployment reaching historically high levels. Public debt is also projected to surge globally, with U.S. debt reaching 136.9% of GDP by 2024. In contrast, China was one of the only countries to experience growth during the pandemic by containing the virus early and reopening its economy. This may accelerate China surpassing the U.S. as a

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    Current International Economic Problems

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    JOHAAN TOMY KALLANY 1940817
    45 views2 pages
    The COVID-19 pandemic has caused a historic global recession by halting economic activity through widespread lockdowns. It has negatively impacted all countries and populations except China. A World Bank report estimates 88-115 million people will fall into extreme poverty by 2021 due to the pandemic's damage to inclusive growth. The U.S. unemployment rate rose dramatically, with long-term unemployment reaching historically high levels. Public debt is also projected to surge globally, with U.S. debt reaching 136.9% of GDP by 2024. In contrast, China was one of the only countries to experience growth during the pandemic by containing the virus early and reopening its economy. This may accelerate China surpassing the U.S. as a

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    Current International Economic Problems During Pandemic

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    The COVID-19 pandemic has caused a historic global recession by halting economic activity through widespread lockdowns. It has negatively impacted all countries and populations except China. A World Bank report estimates 88-115 million people will fall into extreme poverty by 2021 due to the pandemic's damage to inclusive growth. The U.S. unemployment rate rose dramatically, with long-term unemployment reaching historically high levels. Public debt is also projected to surge globally, with U.S. debt reaching 136.9% of GDP by 2024. In contrast, China was one of the only countries to experience growth during the pandemic by containing the virus early and reopening its economy. This may accelerate China surpassing the U.S. as a

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views2 pages

    Current International Economic Problems

    Uploaded by

    JOHAAN TOMY KALLANY 1940817
    The COVID-19 pandemic has caused a historic global recession by halting economic activity through widespread lockdowns. It has negatively impacted all countries and populations except China. A World Bank report estimates 88-115 million people will fall into extreme poverty by 2021 due to the pandemic's damage to inclusive growth. The U.S. unemployment rate rose dramatically, with long-term unemployment reaching historically high levels. Public debt is also projected to surge globally, with U.S. debt reaching 136.9% of GDP by 2024. In contrast, China was one of the only countries to experience growth during the pandemic by containing the virus early and reopening its economy. This may accelerate China surpassing the U.S. as a

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    © All Rights Reserved
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    Download as docx, pdf, or txt
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    Current International Economic Problems' which you foresee during

    Pandemic

    The COVID-19 pandemic has transmitted with alarming speed, infecting millions and
    bringing economic activity to an impasse as countries across the globe imposed stringent
    lockdowns to halt the spread of the virus. The death toll as well as the economic toll caused
    by the unprecedented pandemic is unforeseeable and incalculable. The pandemic has made
    this a historic year for the global economy, now beset by a recession the likes of which we
    haven’t seen since the Great Depression.

    As the semi-annual report of the Global Economic Prospects(2021) suggests, there has been
    no country or demographic group spared from the deleterious effects of Covid-19 except
    China; and these reports clearly suggest a setback to the first of the seventeen SDGs-
    eradicate extreme poverty. A report by the World Bank, highlights the pandemic’s damage
    to inclusive growth, especially in middle-income countries and predicts that 88-115 million
    people could fall back into extreme poverty in 2020-2021 as a result of the pandemic. It
    calculates that the world economy would probably shrink by 4.3% in 2020 and a shortfall of
    6.6% from the World Bank’s projection was recorded which is equivalent to $5.6trn (at the
    market exchange rates and prices prevailing in 2010).

    From lockdowns that crippled small businesses and supply chains and put millions out of
    work, the number of long-term unemployed in U.S rose to 4 million in Nov.2020. They
    comprise about 37 percent of the total unemployed population, nearly approaching the record
    high ratio of more than 40 percent reached after the Great Financial Crisis. The share of long-
    term unemployed people is likely to rise further and cause hardships for many working
    people, regardless of the outcome of the new round of stimulus. The longer a person is
    unemployed, the more difficult it is for that person to get a job.

    Historically, US public debt has been contained between 40 and 60 percent of GDP in the
    post-World War II era. But the setbacks effectuated by the pandemic is said to increase the
    public debt dramatically to 136.9% at the end of 2024. Are US citizens ready to coexist with
    such a high public debt for a long time? Will Joe Biden and Congress manage to raise the
    debt ceiling smoothly over time?

    In contrary to the rest of the global economy, China is one of the few countries in the world
    to experience economic growth amidst encountering an pandemic. It is astounding that China
    returned to market quickly by containing COVID-19, reopening the manufacturing sector,
    and deepening regional trade undercurrents with countries like Vietnam. It also means that
    the world will experience “fractured growth” where one major economy grows while all the
    others contract for the first time in decades and slowly China surpassing U.S to become the
    global superpower. What kind of strains will this put on our global economic recovery and
    how will it all spill over into our geopolitics? That’s the question we’ll be asking and trying
    to answer in 2021.

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