Looking Globally to Understand Domestic Impacts of Covid-19

Core Financial PartnersEconomy, Individuals

Looking Globally to see Impact of COVID-19
As parts of the U.S. begin to re-open amidst the threat of Covid-19, insights into the potential problems that regions may encounter can be gained by witnessing events unfolding in Asia. Following an approximate 2-month lockdown, Australia, Singapore and Thailand have begun partial re-openings that don’t appear to be bringing the economic recovery everyone wished for.

As Daniel Moss of Bloomberg reports in his 5/21/2020 article “This Recovery is Doomed Before it Even Begins”, regions dependent upon trade and tourism for economic robustness, face an uphill climb. Despite opening to local business, they remain isolated from the outside world, and domestic customers are unable to make up the shortfall due to layoffs and wage cuts. Even small extravagances feel out of line during this crisis. Moss makes a keen point, “You can’t just plug a labor market back in after cutting the cord.”

Much of the economic success seen world-wide, pre-Covid, came as a result of globalization. With borders closed to pre-Covid levels of trade and tourism, this could mean a step back for many regions.