The Covid19 pandemic has sent the global economy into one of its worst recessions ever, and it isnt yet clear when a full recovery will be in place. Recent progress on coronavirus vaccines has brightened the economic outlook, but some economists said a potentially slow rollout of vaccines across developing economies could hamper the return of activity to prepandemic levels.
Even among advanced economies, renewed lockdowns in Europe in a bid to stave off a resurgence in infections could push back economic recovery, according to economists. The vaccine discovery is a shot in the arm, but not until 2022, Citi economists said in a report in early December. Still, there will be clear improvement in the global economy in 2021, partly because its not hard to be better than 2020, they said.
Steep decline in activity
The rapid spread of Covid which was first detected in China forced many countries into months of lockdown in 2020 that markedly reduced economic activity. As a result, gross domestic product the broadest measure of activity plunged to record lows across many economies.
Travel restrictions remain
One main feature of coronavirus lockdowns around the world is the complete or partial closure of borders, which brought much of international travel to a halt. As of Nov. 1, more than 150 countries and territories had eased Covidrelated travel restrictions, according to the United Nations World Tourism Organization.
Government debt soars
Governments have increased…