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Economy: Which country will be ahead and which will be behind in economic level in 2021?

The coronavirus has hit the economies of many countries around the world. After World War II, the year 2020 saw a rapid decline in the world economy.

Economy: Which country will be ahead and which will be behind in economic level in 2021?

economic slowdown

Billions of people have either lost their jobs or lost their income. The government is implementing multi-billion dollar schemes to curb the damage to the economy. There is uncertainty as to whether the dollar, which has collapsed in the economy, will recover in 2021.

According to preliminary estimates, the Chinese economy is booming. However, compensating many other countries in the world by 2022 has also become a big challenge. Inequality is also on the rise. The total wealth of 651 billionaires in the United States has grown by 30 percent to 4 4 trillion.

On the other hand, 250 million people in developing countries may face extreme poverty. It's time for half the world's employees to lose their means of subsistence. Measures such as lockdowns to prevent corona has hit economies around the world hard.

Success is not guaranteed even when things like Corona's new strain and the race for vaccines are underway. Even rich countries have got the vaccine. However, they cant vaccinate people for herd immunity by the end of 2021. The supply of vaccines in developing countries is also low. Therefore, the spread of the virus is likely to be faster in such countries.

These countries recovered from the health crisis

The Corona and the countries that can be said to have won at the economic level could also include China and South Korea. This is because these countries gained control of the coronavirus in its early days. Alternatively, it also affected their economies.

China's economy is projected to grow by 8 percent in 2021. This means that China's growth rate this year could be double that of the developed world before Corona. China is heavily dependent on exports. China has benefited greatly from the lockdown imposed on Western countries.

While Western countries have been hit hard by both entertainment and tourism, they are at the forefront of household literature and medical literature. However, despite all this, China has certainly increased its economic dominance in the whole of Asia.

China is increasing its dominance through new free trade in the Pacific and infrastructure projects for trade routes from Europe to Africa. China depended on Western countries for things like semiconductors. However, now China has started investing in it through advanced technology.

Over the next five years, China will become the world's largest economy, surpassing the United States. According to earlier estimates, China will now become the world's largest economy at twice the rate.

The challenging situation facing these countries

The situation of the rich countries in America, Britain and Continental Europe looks very bad. After a brief recovery in the summer of 2020, the wheels of these countries' economies have turned to mud again. The second wave of corona and lockdown are the main reasons for it.

In the United States, for example, the corona has had a profound effect on jobs and growth. As a result, trust between businesses and customers has waned. Although it is expected to make some headway next year, the economy of these countries is expected to hit five percent by 2022. It is feared that developing countries will suffer the biggest losses in 2021. Many developing countries do not have the financial resources to buy vaccines, nor do they have the public health care system to treat infected people.

These developing countries cannot even provide large grants. Europe and the United States have done just that. However, this is not possible in developing countries. The recession in the West will reduce the demand for raw materials in developing countries. Also, lockdown will not be increased due to the non-receipt of large loans from rich countries. This will of course result in the proliferation of the corona.

developing countries

For fast-growing economies such as Brazil, India, and South Africa, finding a way out of the current situation is a big challenge. In fact, it has become very difficult.

Let us look at the example of South Africa. South Africa does not qualify for the vaccine given to the poorest countries. However, South Africa is not in a position to buy vaccines from the commercial market at the same time. What is special is that the vaccine for western countries is being made here.

In the last few years, the middle class has grown rapidly in these countries. Many have returned to their hometowns or the slums in the cities because of the loss of jobs or the absence of work. This has led to more poverty than ever before.

Will it have any effect on a social structure?

The effects of this health crisis are seen differently in different parts of society. People who work full time and have a high salary are successful in saving. Because they cost less Wealthy people, especially in the United States, benefited greatly when the stock market rebounded after a health crisis. This is especially true of Amazon, Netflix, and Zoom. This trend could continue.

The big question now for the economy is, will secure jobs and high-paying jobs keep their spending the same in the future, or will they save their savings in the face of future uncertainty?

On the other hand, it is very difficult for those who have lost their jobs or their businesses to find work again. Reaching previous economic levels can also be difficult. This can be seen more in areas like retail or hospitality. Because it is very difficult to fully compensate. This category includes young people, women, and minorities. Inequality can increase. Because rich countries can reduce their subsidies. Also, deductions can be made between employees and contract workers.

Republicans and Democrats have been at loggerheads over additional aid spending in the United States. An unprecedented agreement was reached in Europe as well. It also raised tensions over EU funding. In fact, co-operation between countries could have been a good basis in the aftermath of this great health crisis. However, international cooperation appears to be weakening. Economic tensions have undermined the global commitment to free trade.

After the distribution of wealth and higher taxes, more economic resources can fall into the hands of Western countries. From which victims of health crises can be helped. However, in the current recession, it will be very difficult to help politically. The previous health crisis has also seen social upheaval.

Hopefully, the inequality created by the corona can be addressed in the right way and help build a better world.

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Yogesh Sawant
See all posts by Yogesh Sawant