https://www.pymnts.com/economy/2020/international-trade-shows-signs-recovery/
After initial claims that international trade may be permanently scarred from the COVID-19 pandemic, there has been a solid comeback. Data is showing that we are recovering much faster from this economic downturn than that of 2008. It also shows that the international trade has not fully recovered, but we are on pace to recover substantially faster than in past recessions. This data comes from many of the major economies such as China and the UK. Although, these countries do not encompass the entire international economy, they are good indicators for how we are doing as a whole.
Why do you think we have been able to recover at a substantially faster pace from this recession/pandemic than those others in the past?
4 comments:
To answer your question, I would have to say that the recovery process for international trade has been quite fast due to how quickly the initial covid-19 restrictions were lifted. Furthermore, I also believe that there is a lot of political power/involvement that has pushed companies to get back to normal. I would not be to optmisstic that this recovery will continue given with all of the current uncertainty. However, it is a good step forward.
I think that we have been able to recover so quickly because we lost so much so quick. In a matter of months the economy was significantly hampered due to forced shutdowns of business and trade restrictions since we have slowly opened them back up we have been seeing gains that we where seeing pre covid. In short I don't think the current recovery will last long because there are still many uncertainties that could set us back in a recession
I think international trade is improving because a lot of countries that have dealt efficiently with the pandemic are now functioning at full pace without any hesitation. They took the time to take proper precautions for some time and are now trading. The other major reason is how travel restrictions are being taken down. The U.S has suffered to follow certain guidelines (COVID related) due to bad leadership and the economy has greatly suffered. However, the good news is that international trade will continue to do good as it is not all dependent on the U.S alone. Looking at overall recovery for the U.S we have to wait and see within the next few months how everything plays out in order to make conclusive predictions.
I agree with your guys opinions, especially that the quick recovery has been due to the rather quick decline. It will be interesting to see if these recovery rates flatten in the coming months. I think that there may be some problems with international trade just due to international relations. Especially in the United States with the upcoming election, there may be some uncertainty with how international trade will be moving forward.
Post a Comment