Did we suffer from a global recession 2020?
2020 should be a year everyone wanted to forget. It was a year most of us here in Malaysia were at home most of the time, even when we were not sleeping on our bed. COVID-19 came and wreaked havoc and many businesses were forced to shut. Many businesses said they were merely trying their best to stay afloat in 2020. Then, when 2021 started, we have our Movement Control Order 2.0 (MCO 2.0) Everyone was like, ‘AGAIN?’
What is GDP growth 2020 like?
Image below showed the world in 2020. Global Recession 2020. The economies all around the world. Red may be an auspicious colour for Chinese New Year but in economics, read shows negative. The darker the red, the more negative the GDP growth was. China is not in red yeah. Countries like Spain and the UK is in dark red. Here in ASEAN, we are not considered red. Probably more like pink. Still, we are in negative GDP growth territory. Right after this image would be 2021.
What is 2021 GDP growth like
The image below is a projection of 2021’s GDP growth globally. This is the year after the global recession 2020. Positively, all countries I could see are in green. It’s only a question of light green or darker green. Anyway, all these are also based on the success of vaccinations all over the world including Malaysia. China and India will be leading ASIA with GDP growth of 8.04% and 7.9% respectively. Even the United States where COVID-19 hit them hard, they will achieve a significant growth of 3.19%. For developed countries, anything above 2% is considered very positive.
We could also choose to believe this forecast. If it’s as per forecasted, then recovery post COVID-19 starts in 2021. Better not ask if we are going to be growing faster than pre COVID-19. There remains uncertainty because even for countries where they already have the COVID-19 vaccines, the work to vaccinate their people has been slow. Malaysia? It may take up to 18 months to fully vaccinate everyone. Is the economy recovering only after everyone is vaccinated?
Erm, it’s more like it will recover after MOST of the world is vaccinated. Do note yeah. Malaysia is a trade-reliant nation. When the world grows, we grow. Else, with just 35 million people, we better be part of a larger economic group. ASEAN need to do more, actually. Happy understanding.
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