Due to the corona pandemic, the global economy is facing the worst possible situations. According to some reports, the global economy will shrink up to 5.2% in 2020. It is the deepest recession until the second world war. The main reason for the recession is a lockdown. That completely disturbs the demand and supply chain of the international market. Ultimately it results in the loss of millions of jobs worldwide.
However, it is predicted that the world economy will rebound in 2021 with an estimate of 4.2% growth. This is due to the various unlock measures taken by different countries. The prediction is uncertain and can show fluctuations as the vaccine of the coronavirus is still under processing. The advance economic growth is predicted to show an increase of 3.9% in 2021. Some experts are also predicting that the real recession is still to come if the vaccine is not discovered sooner.
In 2020, oil consumption is at the lowest point, and it is one of the main reasons behind the deepest recession. Due to this gulf countries’ economy is getting worst. But after lockdown, the oil demand has shown drastic growth in the international market. That gives some relief to the economies of oil producer countries. Several studies forecast the rebound of the economy in 2021. Moving further in the article, let’s discuss some more economic trends that are likely to come in the upcoming years.
Check out several factors that will affect the global economy in future
After the deep recession in the global economy, various top economists predict the economy’s bounce-back in the upcoming years. This news is an excellent relief for potential investors. Let’s see some trends one by one.
- Apart from the corona pandemic recession, climate change would be one of the most significant factors to affect the global economy. It is estimated that due to climate change, more than 100 million people will migrate to developed countries from developing countries. This can create a big gap between the economies of various countries. According to several reports, by 2030, the world population is likely to face a boom and ultimately results in scarcity of clean water, food, shelter, medicines, etc. It can be worse for developing the country’s economy.
- The new decade is the era of artificial intelligence, robotics, and automation. This industry will create substantial global employment and thus positively affect the global economy. It is predicted that by 2022, only 60% of tasks are performed by humans’ rest are the matter of machines, robots, AI, etc. By 2030, it is estimated to reach 50%. Hence the next era is the era of information technology, and accordingly, the economic trends sustain.
Other factors that affect the global economy are globalization, demographics, space research, etc. These factors can cause revolutionary changes n the worldwide economy of the upcoming future. Thus, to create opportunities, you should be aware of current economic trends. With the advancement in technology, more competition is likely to see in the future. The increasing population is also a factor that should be considered.