World trade primed for strong but uneven recovery after COVID-19 pandemic shock – World Trade Organization
The article predicts that the economy will be rapidly recovering from the 2020 Covid-19 pandemic, drastically improving the measurements from the year before. The economic rebound she temporarily improve the speed of trade, slowing down by 4% when 2022 begins (World trade primed for strong but uneven recovery after COVID 19 pandemic shock). While the pandemic will most probably not be as big of a public health issue by then, its effects will still be felt in the global economy by that period.
As a whole, the United States will be expected to recover from the effects of the pandemic, re-establish their influence in foreign and domestic trade. However, it can also be said that the increase in trade will be a temporary effect on the ceasing pandemic, not a full return to form or the establishment of the new norm. Furthermore, the possibility of the virus resurgence poses the threat of another economic collapse.
While the country itself most likely will be able to improve its position throughout the year, each individual area, state, and community will have to experience the hardships of managing the society scarred by the pandemic, leading to regional disparities in trade and economic instability.
In the short-term, managers should anticipate a boom in both supply and demand, as the economy will attempt to recover after a long period of stagnation and decline. Pricing will be expected to decrease, in the face of increasing buying power of the population, and the rising demand for commodities.
Reference
World trade primed for strong but uneven recovery after COVID 19 pandemic shock. WTO. (n.d.).