How has Global trade bounced back from losses suffered during Covid

When the World Health Organization (WHO) declared COVID-19 as a global health crisis, governments worldwide were left with no choice but to put a halt to all economic and social activities. This drastic action of shutting down the entire nation was first started by China and later followed by the rest of Asia, Europe, Africa, South America, and, eventually, North America as well. The lockdown resulted in the shut down of manufacturing, construction, retail, and extraction industries as well, with little to no revenue for months on end. However, nations that took less drastic steps could still find transporting links or ports willing to take their goods. The services industry was also at an advantage since most of its employees could work from home.

Even though the virus had originated from China, it was the first major economy to contain the pandemic and open its economy. Since then, it has been the driving force of global growth. The US followed with a faster than expected rebound soon after its short lockdown. Although trade levels are still below levels from before the pandemic, it has managed to snap back sturdy. In fact, according to the Kiel Institute for the World Economy, by June, half of this year’s loss was recovered.

What helped most of the world to recover was quick, sound government action. Although closing down economies was a hard decision, it proved useful for lessening the damage caused by the pandemic when the world knew very little about the virus at the beginning. Governments also enacted health policies and prompted citizens to practice hygiene and social distancing.

It also helped that most industries quickly adapted to the “new normal.” Manufacturers switched their operations to produce what was in demand and needed to defeat the disease, such as ventilators, sanitizers, and masks. Moreover, remote working was enforced by many companies to keep operations running during lockdowns while still allowing social distancing. Governments around the world also quickly stepped in with stimulus packages, helping businesses retain their staff members and allowing people to pay their bills. These measures kept a lot of small and medium-sized enterprises (SMEs) open and helped them find their feet.

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