Following the unprecedented period caused by the coronavirus pandemic, the global economy is in tatters and many will be poised to see how it will recover once the disease is managed. As we speak, there are seven vaccines which are in phase three trials, the final step before approval. This is indeed encouraging as once we have a cure which diminishes the impact of the coronavirus, we can then divert our attention at growing enterprise. So, what can we expect in terms of economic recovery?
Pent up demand
The coronavirus has brought with it several hardships, taking away liberties we would have deemed God given rights. Many people are still not comfortable with visiting restaurants, traveling, and even going outside unless absolutely necessary. Once the pandemic is under control, you can expect many to make up for lost time. People will appreciate that they can comfortably visit restaurants, book holidays, and go out regularly with no fear of the virus spiraling out of control. As conditions normalise, people will revert to their preferred way of living, which includes many activities related to spending of money.
Increase in job opportunities
A number of businesses have suffered from a significant impact due to the pandemic and subsequent lockdowns. Unfortunately, some organisations have had to lay off their people and halt any recruitment due to the lack of business activity. Once the pandemic is under control, and people’s confidence is restored, one can expect an uptick in business activity and hence more employees would be required to keep up.
Once we kick-start growth mode, people would be willing to explore additional sources of income. Amidst a positive outlook and a growing feel-good factor, you can expect many to evaluate different investment options aimed at growing their net worth.
Slower recovery for some
Although there will be those who would immediately revert to their preferred lifestyle, there will be others who need more time to pick up the pieces. A number of people have lost their jobs, had their incomes slashed and have seen their businesses in ruins. For those who have suffered greatly at the hands of these recent developments, a conservative approach is natural and more time would be needed until confidence is restored. They would also be eager to await their situation to improve prior to contributing effectively to the local economy.
So, what are your views on the economic recovery? How do you think Malta will perform? Let us know in the comments section below.