The global economy has been battered by Covid-19, causing the worst recession since the Great Depression of the 1930s. It will be the new economy where many areas of the economy would not go back to the level of what they have been before. Talking about the poor countries that do not have the capacity to the kind of fiscal and monetary support as compared to the other developed countries then the cost is huge, but secondly, even within the advanced world, the countries which have not locked down rigorously like Sweden has seen its economy spring pretty much by the same amount as other countries with the tougher lockdown. By the end of 2020, the world GDP was about 7.5% lower than it would have been without the pandemic. Globally more than 15% of youth people who were in work before covid-19 have lost their job. How the government adopts today’s systemic change will determine how rapidly the country’s economy can recover.
Many governments in the world choose to lighter their belts rather than spend and the result was a slow economic recovery. The pandemic has brought about enormous changes. Perhaps the biggest is that for many people, the office moved from the cubicle to their working station at home. In the long term, it could boost economic growth and decrease inequality. One of the chief constraints on growth was the fact that it was very expensive to live near cities like London, New York, Tokyo, San Francisco. So there is an opportunity if people shift toward working from home. The digital purse that is now taking place as a result of the pandemic will lead to accelerate changes in the economy. There is a lot of positive impact because of covid, people started using e-commerce websites more frequently as it can be helpful to boost our economy. People recently in India started to work on their skills by less focusing on degree/certificate and this is going to have a massive impact in the long term for the further boost. Today the online world is more active than the physical world and people are connected. People started positively using the internet to enhance their skill as per the need of the world and future. We have seen massive investment of 8.76 billion dollars in many of the startups by foreign investors that is positive news for the Indian economy. We started investing in the market rather than putting the money in banks. Growth of the economy is a slow process but the impact we are creating is worth it to influence the entire world. Foreign investors are attracted to us because we are a market of 1.3 billion minds and everyone is unique. Finding yourself is one of the unique ways to boost our economy. As with the economic shocks of the 20th century, covid-19 present an opportunity for reforging of the relationship between Government and the individual. In many ways, many hopes would follow the previous shocks of the 21st century. The question is whether or not today’s politics is up to the task.