COVID-19 vaccine rollout will revive global economies: research

The pandemic has created serious challenges such as youth unemployment, rising poverty, and income inequality

COVID-19 vaccine

COVID-19 vaccine rollout will revive global economies: research. Source: flickr.com

GlobalData forecasts mass vaccination programs against COVID-19 to bring the world to recovery in 2021. Therefore, the company revised its forecast for global economic growth for 2021 upward to 5.31%.

Major economies including the US, UK, Germany, China, and India are projected to grow real GDP by 4%, 5.5%, 3.9%, 8.6%, and 9.7% in 2021.

Although GlobalData forecasts a revival of the global economy, with real GDP to grow by 5.31% in 2021, the pandemic has created some long-term challenges. ‘Temporary’ layoffs in the US are likely to turn permanent as an increasing number of companies are filing for bankruptcy and announcing major reduction in the workforce. Limited economic activity would lead to lower earnings of businesses, and, consequently, make it difficult for companies to repay debt and avoid bankruptcy. Many countries’ currencies have significantly depreciated against the dollar and euro. Due to the outbreak, repayments will increase for companies that have borrowed dollars and euros
Bindi Patel, Economic Research Analyst at GlobalData

The long-term impact will be felt most strongly by the poorer people living in rich countries, he said, while poorer countries will be more severely affected. Asian countries face serious challenges such as youth unemployment, rising poverty, and income inequality.

The International Labor Organization and the Asian Development Bank estimate the loss of approximately 15 million jobs in 2020 among young adults and teenagers in the Asian region.

Patel concludes that if any reforms are not implemented properly, these problems will become increasingly difficult to address in the next years.

We’ve reported that Pfizer-BioNTech’s COVID-19 vaccine, BNT-162b2, is expected to generate $30 billion in sales by 2026, with peak sales of $13.9 billion in 2021

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