AmiSight 3/17: Looking At the Lasting Economic Impacts of the Pandemic

It’s been five years since the world was turned upside down when the COVID-19 pandemic took hold and disrupted the economy. And while the immediate shock has passed, the aftermath continues to reshape global economies and markets.

Reuters looks at the main impacts the pandemic had on the global economy:

Debt, inflation, and interest rates – Global government debt has risen by 12 percentage points since 2020. The pandemic also sparked high levels of inflation fueled by post-lockdown spending, government stimulus packages, and shortages of labor and raw materials. To offset rising prices, central banks raised interest rates.

Labor and travel shifts – As lockdowns eased, employment regained momentum but with a considerable shift toward sectors such as hospitality and logistics due to the growing retail delivery sector. Women in the workforce particularly shifted as many had to care for children at home. While the airline industry has significantly recovered, hotel prices around the world are still inflated.

Digital gains – As home-bound consumers had no other choice but to shop online, the digital economy skyrocketed in 2020. Five years later, some pandemic-era gainers have lost most of their appeal, but others have enjoyed lasting gains as new markets enabled by the digital shift have opened up.