Even before the 2020 global pandemic hit the world in earnest, the global economy was in a precarious place. Many of the largest developed and developing countries were already experiencing low, slow, and even no growth. In this sense, Covid-19 is catalytic and has accelerated the threats to the global economy. Moreover, a number of headwinds are making a bad situation, worse. Technology and the risk of a jobless underclass; weakening demographicsin terms of the quantity of the population and the quality of the workforce; worsening income inequality; scarcity of natural resources and climate change concerns; unsustainable debts; and declining productivity.
Dr. Dambisa Moyo outlines five things that will define the post-pandemic world economy:
- Governments are big and will get bigger (in terms of debts and deficits.)
- Governments will become more important as the arbiter of capital and labor in an economy.
- Private sector will become smaller.
- Private industry, where different sectors are more concentrated, face greater taxes and regulation.
- De-globalization will continue across the major pillars: trade, capital flows, immigration, and the spread of ideas.