The impact of the economic earthquake that occurred a couple of years ago is still being felt today. Many economists have predicted that some countries may not fully recover from the downturn for at least a decade. However, some countries have rebounded strongly due to the effective action they took during this period. By placing their economic focus on industries looking to pull the economy out of the pandemic, they have moved quickly out of the turmoil.
Many Western economies are struggling to bounce back following this downturn, with many posting high inflation levels. We will examine what causes inflation and how it is symptomatic of the economy’s overall strength. Today, we will look at the countries emerging out of the wreckage with a positive economic outlook and the reasons behind their growth.
United States of America
As the world’s biggest economic superpower, America was in a difficult position with Covid-19. The country’s geography meant plenty of rural areas didn’t necessarily need to lock down as harshly as the built-up city areas. In 2021, President Joe Biden announced a string of massive stimuli to reignite economic growth. This appears to have been a wise move as the United States economy has bounced back to above the output levels seen in Q1 2022. This has been noted in studies from fiscal and monetary think tanks.
As the tech capital of the business world, American companies insulated themselves from the impact by moving many operations to online and remote operations. Many big tech companies, some of which are the biggest in the world (Google, YouTube, Apple, etc.), bore the brunt of the impact by emphasizing digital working. Now that their workforces are back in the offices, they have continued where they left off.
One of the most notable recoveries from the economic collapse in 2020 took place in Taiwan. Not only did they deal with the issues Covid-19 posed a lot more effectively than many other countries in Asia and elsewhere, but they have also brought their economy back to even higher levels.
Taiwan relies heavily on manufacturing and is one of the big players in the world when it comes to the production of manufactured goods. Recent economic studies have shown that their economy has rebounded strongly. Figures show that it has rallied to over 6% higher than the levels it was at the beginning of 2020.
Despite announcing strict Covid measures, Australia’s economy is such that it can rebuild far quicker than some other Western economies. With a strong economic outlook, high employment, and much higher living standards than countries such as the United Kingdom and the United States, it attracts top professionals from across the globe.
Many economists have forecast that countries such as Australia and New Zealand are poised for solid periods of economic growth based on these factors. You can find many Australian cities among the top cities to live in anywhere in the world. The reason for this is down to several factors. Still, a strong economy and high living standards show how much their economy has recovered, given that the long-term outlook is extremely positive.
Although the war in Ukraine has put pressure on inflation, mainly on commodity prices such as wheat, gas, and oil, some countries are better positioned to absorb the impact of these negative economic factors. Countries such as the United Kingdom are struggling to keep the cost of living down due to these factors. However, countries such as Norway, which is a net exporter of oil and gas, have been able to manage these costs more effectively.
Much like Australia, Norway ranks highly among the top countries in the world to live in. This is due to the fact that they are not so heavily reliant on important commodities and have a strong focus on driving unemployment lower while maintaining a high standard of living.
It might still be too early to see which countries rise out of the economic turmoil of 2020. Some factors that have led to such serious downturns may not be reversed for several years. At the end of this decade, other countries may have rebounded quicker than some of the nations mentioned in today’s article.
As other mega powers such as China begin to close the gap on America, with many economists predicting they will overtake the USA at some point in this decade, the global economic outlook will likely look a lot different once we get to 2030.