The situation will only get worse

The world is blocked today because of Corona. The death march is on the rise. The supply system has collapsed, the wheel of the economy has stagnated. Water-land-space transport-communication closed. People from one country do not go to another country, nor can they go. It is forbidden to come and go even in the house next door or in the surrounding area.

All in all, human life around the world in extreme uncertainty. But this is not the last word. The world will one day be freed from this situation of the corona. Then what will be the course of the global economy? The economist hopes that this terrible epidemic will change the world economy forever. The permanent change will also happen in politics.

The epidemic has worsened the four existing conditions in the world economy. Just as many difficult diseases can be cured through surgery in the human body, this situation can be improved by performing major surgeries in the economy as well. But without that step, the situation will get worse.

The first of these situations is increasing stagnation, i.e. low productivity growth, declining dividends from private sector investment, and near depreciation. The more you don't take risks, the more this reality will intensify. This will happen even if people increase their savings after the epidemic. Because it will hit demand and innovation in the long run.

Second, the gap between rich countries and other countries will widen in terms of their ability to recover from crises.

Third, the world will become increasingly dependent on the US dollar, both in the financial and commercial sectors.

It is true that the United States will no longer be so attractive for investment, but it will still be more attractive than other parts of the world. This will increase the existing dissatisfaction.

Eventually, economic nationalism will alienate many countries. It will not achieve full economic self-reliance again, nor will it achieve anything close to it. But this will increase the first two trends. And in the case of the third section, the feeling of deprivation will increase.