As the spread of coronavirus pandemic begins to slow down with the measures taken to curb it, normalization initiatives that will minimize the damage caused to economic activities are topping the agenda. Naturally, the new normalization period that is set to begin as various steps will be taken will be nothing like the pre-corona period.
Hence, the introduction of a new normalization era will lead to several changes, not just affecting this nation’s economy, but the global economy as well.
The new norm in global economiesIt is possible to say that production processes of economies will be reformed worldwide. Additionally, it can be ascertained that in order to ensure food security, each country’s motivation to produce its own supply chain for local health and food products will be extremely high.
Since social distancing will be maintained in mega shopping malls, the trade volume of these malls will not be the same as before. With the addition of many new companies serving in this field, online shopping will become a competitive industry.
One of the most highly-affected sectors of the pandemic is without a doubt tourism.
It wouldn’t be wrong to say that tourism, which at first sharply fell with the deepening of the virus and then came to a complete standstill, will not be the same as before. A normalization period in which travel and tourism will decrease awaits us.
Economic priorities are changing. Inflation, which was a top priority before, will be replaced by minimizing economic recession in the post-corona period.
Increasing budget deficits and high national debt will be the crux of the new normalization period.
On the other hand, we will have to adapt to a new norm in which the educational sector will digitize and distance education will gain significance. Additionally, due to inter-state limitations every sort of scientific activity such as online seminars will be conducted through the web.
During the corona period, we have witnessed that many businesses and employees could work remotely. In the post-corona period, it is possible to anticipate that remote working will gain speed.
New normalization in global economies
Possible changes in the economy are;
Will China be able to maintain its former glory in the global production chain post-corona?
Or will alternatives doors be opened for countries pursuing diversification?
Will global economic institutions continue their downward trend in the new normalization period?
Will EU countries, which exemplify one of the most important models of economic integration, continue as before, or will it follow suit with the U.K. and sever ties with the union due to the isolation of many member countries caused by the coronavirus?
Will the disappointments of economic integrations lead to a merger of various countries across various regions? What will the criteria of economic integration be in the new normalization period?
It is clear that the pandemic will open a new window to reform economic and political power balances just like World War II led to the emergence of new economic powers and superpowers.
Even though it is not hard to guess that China will be a lead actor in the new equation to be formed post-corona, it may take some time to anticipate which countries will be part of this bloc.