The start of vaccination and economic responses around the world
The coronavirus pandemic has greatly affected economies around the world since its beginning, in mid-January 2020. Since then, uncertainty has taken over countries and, consequently, in people's lives. As recently as the beginning of this year of 2021, good news caught the attention and took over the news around the globe, the creation of several vaccines.
Leadership of Asian countries in vaccination and economic recovery
Several countries have produced and are producing their vaccines such as China, United Kingdom, United States,I ndia,Á South Africa, and this in turn has positively impacted the economies and stock markets around the world.
Recently, those who have been responding well to advances in vaccination are the Asian countries. Due to the fact that some countries in the region have started vaccination before most countries, the market has already reacted positively. Japan's stock market, for example, closed higher on January 16, and data published two days earlier showed that the country's Gross Domestic Product expanded by 3% in the fourth quarter of 2020. Following the Japanese, the South Korean and Hong Kong stock exchange also rose, according to CNN, Hang Seng, the Hong Kong stock exchange index, reached the highest level since 2018.
Growing optimism in Europe
Behind the Asian countries, the European continent is slowly recovering from the crisis caused by the pandemic. According to Eurostat, the European Commission's statistical organization, the euro zone suffered a 5% contraction in the last quarter of 2020. According to experts, there are signs of optimism and recovery, but they are still shy due to the vaccination logistics that are still in progress. slow rhythms.
Perspectives on the American continent
In the United States, there is still an expectation for a faster vaccination and with it a better economic recovery. The population, as well as Asian investors, are following the negotiation of US President Joe Biden to approve a new US$1.9 trillion tax package.
Also in the Americas, Latin American countries are also slowly recovering from last year's great crisis. Regarding vaccination, the leading country is Chile, with more than 2 million people vaccinated and intends to vaccinate 5 million by the end of March - about a quarter of the population -, which could favor the economic recovery. According to ECLAC, Economic Commission for Latin America and the Caribbean, an average growth rate of 3.7% is projected for the region. Among those that will grow the most, according to the institution, are Peru, 9%, Panama, 5.5%, and Bolivia, with 5.1%.
Immunization still slow in Africa
Finally, the African continent, which reacted well to the pandemic, managing to reduce the impact that other continents suffered, on the other hand, also has difficulties both in terms of vaccination and, consequently, in economic recovery. Recently, South AfricaÁ received about one million doses to vaccinate its population, but had to stop because of the new variant found in the country. In relation to other countries, the African Union announced at the end of January that it had obtained 670 million doses of the vaccine to vaccinate the population of the continent. However, until the beginning of February, only the countries of Seychelles, Mauritius, Morocco and Algeria had the opportunity to start immunizing the population.
The importance of consulting for the good use of the best markets in times of crisis
Therefore, in most parts of the world, investment caution is still needed. The Americas, Europe, Africa and OceaniaÁ are still at the beginning of the vaccination and their economies call for more time for recovery. On the other hand, Asian countries are already ahead economically, that is, they are safer for foreign investments. Exporting products to these countries is a good alternative when compared to other countries, which are still in their infancy for economic recovery, and with that get more breath to go through the crisis. For that, it is necessary an assertive planning, like an international consultancy, so that you can better take advantage of the Asian success and also grow your business.
By Guilherme C Gomes on 02/17/2021