Expert: the pandemic negatively affected the global economy
10:42, 8 June
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Because of the covid-19 pandemic, there will be a noticeable decline of all markets, a decrease in consumer, manufacturing and financial activities, said the Belarusian political scientist Alexey Belyaev in an interview with the National Press Center of the Republic of Belarus, reports the correspondent of the Union State portal.
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The pandemic has seriously affected the companies that are engaged in trade and basic materials, said Alexei Belyaev.
“It involves instability on the oil and gas markets resulting in a considerable reduction of prices for these traditionally significant goods. A slumping demand is observed primarily in China, which was affected by the pandemic and opted for a lockdown among the first. The demand turndown in China coupled with other reasons led to a sharp drop in prices. This was also followed by the deterioration of demand for other types of raw materials, in particular metals and ores. It is a global process that has affected almost all countries of the world,” the expert notes.
According to Alexei Belyaev, having faced the situation of artificial restraint on their economic activity for two-three months, now some countries are gradually beginning to pull out of this economic collapse. However, the political scientist believes that in the near future the world economy will not be restored.
“The reason is the prerequisites that had formed even before the covid-19 crisis. Firstly, we are talking about the fact that the entire world economic system had already been in the “overheated” state. They had long been talking about the inflated “soap bubble” of world finances, about artificially inflated rates of world currencies that are used as reserve ones. We also observed that before the pandemic, a number of countries had tried to convert their gold and foreign currency reserves from actually currency to precious metals. In particular, Russia has succeeded in this, as if feeling the consequences that the impending crisis could bring”.
The abruptly stopped economic activity of all countries has led to serious consequences for their economies.
“Depending on the length of this downturn, which it is not over yet, there will be a noticeable decline of all markets, a decrease in purchasing, manufacturing and financial activities. Therefore, there are no optimistic forecasts that the global economy will be able to recover and achieve growth indicators by the end of this year,” concluded Alexey Belyaev.
