China was the only country that experienced significant economic growth in 2020, and that trend will accelerate in 2021. International trade will rebound, but it will be a more “deglobalized” world with diminished global supply chains and more local components. With 40 percent of the world population (3.3 billion people) living below the international poverty line of $5.5 per day, the World Bank estimates that 150 million additional people will fall into extreme poverty by 2021. Governments choosing austerity in 2021 should expect protests and social unrest, given the negative social impacts. However, low oil prices may delay investment in alternative energy sources in 2021, even though these will replace fossil fuels in much of the world in the medium-term. The coronavirus crisis could be turned into an opportunity to make the world a better, fairer place for all in 2021.

Source: Manila Times December 27, 2020 16:52 UTC