After the pandemic began in 2020, economists thought that 2021 would be the year of recovery. This year, almost all countries have recovered. But not everyone recovered in the same way. The speed of recovery has slowed down for some reasons.
The most talked about issue in the world economy this year was the rise in fuel prices. In April 2020, when the world came to a standstill in the lockdown, the price of fuel oil dropped to minus $37. But since then, OPEC and oil-producing countries have been steadily reducing the supply of oil. In this context, the price of fuel started rising from the beginning of 2021. It rose to $83 a barrel in October. This forced all countries to raise fuel prices. However, the rise came at a time when the economy was beginning to recover. The impact of this fuel price hike was felt in all sectors of the economy. Inflation continues to rise by leaps and bounds. The situation is such that big countries including the United States, China, and India are starting to release oil from stocks to the market to reduce fuel prices.
Another reason for the rise in inflation is the increase in all types of transportation costs, including shipping. After several lockdowns, the economy began to recover this summer. Demand suddenly increased. As a result, it is impossible to meet this global demand with the existing infrastructure. The congestion of ships began to increase in the port. Also, many countries, including China, had periodic lockdowns at the local level. Because of this, it took more time to unload the products. As a result, just like the rent of ships increased, so did the time needed to transport goods. Due to this the price of goods also went up. Concerns about inflation began. The situation has reached such a stage that the central banks of different countries of the world are now confused about how to control inflation.
The world has come a long way in alleviating poverty. But in the wake of the pandemic in 2020, for the first time in 20 years, large numbers of people fell below the poverty line again. According to the World Bank, about 10 crore people have fallen below the poverty line in 2020. In the words of Professor Wahiduddin Mahmud, these poor are barely surviving. In other words, just like a drowning person trying to breathe by keeping his nose above water. Sometimes they rise above the poverty line, sometimes they go down.
It is being said that the most effective and quick way to end a pandemic is to get vaccinated. But there is a gap between the countries when it comes to vaccines. In the developed world, where 75% of the population is vaccinated, only 7% of people in low-income countries are vaccinated.
According to the World Bank’s forecast, the global growth rate for 2021 will be 5.6%. In the last 80 years, the post-recession years have not seen such rapid growth. But the character of that growth is not equal.
