The world has gone through unprecedented events since the beginning of the COVID-19 pandemic. Some industries have cratered as a result of the financial crisis, some have gotten through it unscathed and some are still taking a wait-and-see approach. As an investor, looking at the global economic outlook can provide a bigger picture of how quickly certain economies will rebound. One thing for sure is the COVID-19 pandemic has created the most significant global economic shock in decades. We’ve taken a look at where the global economy is now and where it could be headed.
Will Every Country Go Through A Recession?
Most countries will experience a recession in 2020 and beyond, and some countries will be hit harder than others. Developed economies could shrink as much as 7%, while emerging countries may experience economic declines of up to 2%-3%. All of the progress countries have made in the past several decades have been wiped out in a matter of months in some cases. The demand for industrial and energy commodities took a halt as COVID-19 spread rapidly throughout the world. While some economies have opened up, the demand for oil and gas, metals, rubber, automobile parts and more are still much lower than they have been in years. It’s projected that every company will experience some level of recession, but time will tell how hard certain countries will be hit.
Economic Rebounds May Depend On Future Outbreaks
What makes it so difficult to predict stock futures is the uncertainty of future outbreaks, and where those outbreaks will occur. Some countries can’t afford to shut down their economies a second time, but they will also be putting public health at risk by not doing so. It’s a balance each country will have to weigh individually, which doesn’t make the uncertainty for other countries any better. The rebounds some countries have experienced with slowly re-opening their economies have been promising, but there’s no guarantee they will rebound in the same manner if another outbreak were to occur.
Coordinated Efforts Globally Can Expedite Economic Growth
The lack of a coordinated global response to the COVID-19 outbreak is evident and could be one of the major reasons for slow economic growth through the rest of 2020 and into 2021. Slowing the spread of COVID-19 should be one of the top priorities globally and might be the biggest factor in enabling and supporting global economic growth. While each country has its unique issues to deal with as they rebuild their economy, global coordination will aid in expediting economic growth around the world.
The financial crisis caused by the COVID-19 pandemic has impacted individuals, small businesses and corporations differently. At Stock Investing Info, we understand the various aspects that lead to strong and sustainable economic growth. As an investor, you may not know exactly what to focus on in your portfolio with all of the uncertainty worldwide. We are here to help you make as much sense of the situation as possible, so contact us at any time for advice.