The International Monetary Fund estimates the global economy to have shrunk by 4.4% this year compared with a contraction of just 0.1% in 2009, when the world last faced a financial crisis. Still, unemployment levels varied dramatically across the globe. In some countries, like China, COVID-19 infection levels were effectively suppressed through strict but relatively brief lockdowns, allowing unemployment rates to remain low. Another direct effect of all that government spending has been a surge in savings among consumers in many parts of the world. They began returning to earth in the latter part of 2020 but remain well above pre-pandemic levels.

Source: The Star December 31, 2020 06:00 UTC