Leading global economists have warned of a looming crisis and prolonged recovery from the ravaging global pandemic. Economist Nouriel Roubini, popularly known as “Dr Doom”, has predicted that some jobs will easily not come back after all the dust starts to settle. At the moment, the world economy has already taken a hit. Every sector, including technology, will likely face this crisis. Even live casino dealers that provide the best bonuses in the market are preparing for this.
The professor has also described the situation as “anemic”. The global economy will recover slowly but the ripple effects have been described as extreme.
Due to the millions of jobs lost during this period, a recession is also on the table. Economies globally are feeling the pinch. This may just turn out to be a nightmare all over. Professor Roubini is famously known for predicting the financial crisis in 2008. He is among the few economists who foresaw what was coming.
According to the professor, it took more than three years until output fell sharply in the global financial crisis era. However, during this period it simply took less than three weeks. That’s a very huge contrast compared to what happened in 2008.
What the extreme looks like
Many economists reckon that any recovery will be in what is known a “U” or even closer to an “L”. Professor Roubini calls it the “Greater Depression” according to an interview he did with the BBC.
Recovery according to the U-shape indicates that growth will fall and bottom out. It will then pick up after a prolonged period of slow or no growth.
On the other hand, the L-shaped recovery is a little extreme. It falls sharply and stays there for some time.
This is due to the number of jobs lost in both poor and rich countries due to the lockdowns that have been set up to fight the virus. Some of the jobs have completely gone. A section of jobs may come back in parts but some will need to start from low levels while they grow upwards again. Most jobs will not have wages, little or no benefits, and they may be part-time as well. The insecurity of jobs will be there for the average working individuals.
Most economies are grappling with the thought of opening up while trying to avoid a second wave. Opening up shops is easy but the question that remains on most people’s heads is whether they will bounce back faster enough. A good example is China. Flights are less than expected while malls are half empty with not so much going on. In Germany, many shops are open but very few people are risking to go there. Things are not yet back to normal.
However, this may just be a blessing in disguise for some Asian countries. Countries that depended mainly on China and other nations will soon start thinking about investing in their industries after seeing the crippling effects that have been brought due to restrictions. Japan is rethinking it’s strategies and coming up with their industries to reduce its overdependence on countries such as China.
This may just work out to their advantage in the long run. Some countries will see better growth if things start returning to normal. Additionally, there will be a huge split between the United States and China. The result will be drastic. Many countries will be forced to choose between the two superpowers and the world may just come out of this divided. However, we just wait and see how things will pan out.