The world pandemic was a real shock to all mankind. She greeted humanity in his comfort zone and made him leave that comfort zone in a short time. With her appearance, she brought us an invincible enemy with whom we have been actively fighting for a whole year, and it seems that we will fight for at least another whole year. A large number of interruptions, restrictions, quarantines, and isolations do not suit the world at all, but they do not suit the economy either. Although they are good for human health, they are not good for the economy that was suddenly hit by this shock which slowly began to take away all its power that it had accumulated from the end of the economic crisis in 2012 until the end of 2019.
The economy is currently trying to cope with what has happened. And what happened to her? It has incurred excessive costs, borrowing, overly unplanned investments in relation to the virus, it has incurred many layoffs, market destruction in another, poor GDP in each country, poor production, exports, and imports. In general, a terrible 2020 and a hopeful 2021 have happened to the economy, which will try to change all the bad things that the old gossip left behind. It is hopeful, but still optimistic that things will work out if we are disciplined enough.
It seems that the human race is no longer as disciplined as it once was, and that will not allow this economy to be what we all want it to be for a period of time – with high rates, no inflation, and no debt. But unfortunately, the situation is not naive at all and something must be done about it. The questions that have been asked lately are whether the modern economy can withstand this emerging shock and continue to grow, or whether it will soon be in the middle and function. Have you asked yourself this question? Are you worried about this whole situation? If the answer is yes, believe us all that we are not afraid of the situation with the coronavirus all over the world and we do not know if it will improve or if there will be an additional deepening of the crisis.
Today we will talk about that, that is, today we will talk about whether modern economies will be able to withstand the pressure that the health crisis puts on them and whether the world will withstand the next fall in stock prices. We did a little research and came up with the answers, and you can find out if you read this article to the end.
How did the whole economic shock start and what is the reason for its occurrence?
In November 2019, a new virus with strange symptoms appears in the city of Wuhan in China. The virus is spreading rapidly and is affecting more and more people. China did not notify the world until December when it became known that a new strain of the virus had spread to that part of the world and spread rapidly to the respiratory tract. The world thought that this virus would pass easily, that it would stay local and that everything would be fine, but as the days went by more and more people became infected all over China, and it slowly began to spread to other parts of the world.
Thus, in March 2020, there was almost no country where there was not at least one infected person, with which the World Health Organization declared a world pandemic. With the onset of the pandemic began quarantines, isolation, distancing people from each other, lockdowns that closed businesses, and workers were sent home, and so on. Thus, economic activity began to decline, all transactions were reduced except for those made for food and basic things, with which the world slowly began to weaken, and thus the economy began to weaken, which barely recovered from what happened to it in 2012.
How will the world react to this shock and will the economy withstand the next stock market shock?
Something similar began to happen in the United States during 2006 and 2007 when the economic crisis actually began. The New York Stock Exchange in that period experienced several huge crashes that meant only one thing – to prepare the world for a huge economic shock that will cause perhaps one of the biggest crises to date. As time went on, more and more countries reported that they were facing the worst economic crisis to date, but with the revival of the economy and tourism around the world, things seemed to be settling down slowly and the world began to return to normal, and so did the economy. What stands out as a prediction is the approach that follows is that the world can expect this same crisis very soon, say from www.beststocks.com.
But they say that despite the fact that the world economy is approaching and threatened by a new economic crisis, it will be better defeated this time, given that the world recently faced the crisis and knows exactly where and in what moments to invest or inject money and apply measures in order to be able to save itself from bad economic conditions.
The world could see the recovery of the economy in about 6 years
The best news that can be announced in this regard is that the first positive results that we can expect from the economy from the recovery from this crisis would be seen in about 6 years. According to economists, this is the minimum threshold that is enough for the world to revive and the economy around the world to begin to show signs of recovery and new life. Achieving the revival of that segment requires tremendous skill on the part of world governments and the Ministries of Economy and Finance, which must wisely distribute money, finance, and refinance, cut where needed, and provide more where needed. is needed in order to give new life to the economy.
What we have left is to hope that everything will end in the best way in relation to the virus and the crisis that has hit the world economy and that we will soon return to the old free way of living without a virus, without crisis and without problems.