5 charts show the stages of global economic recovery since Covid hit
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Commuters riding a train to Hong Kong during the Covid pandemic.
Dale De La Rey | AFP | Getty Images
Travel stopped, oil prices plummeted and unemployment rose when the coronavirus struck in 2020.
This was when signs of recovery began to emerge. The stocks markets quickly recovered and were able to surpass 2019 levels. Global economic recovery is underway, although the speed varies by region and industry.
Two years after the WHO declared Covid a pandemic, here are five charts that show much — or how little — the world has recovered.
There is a high demand for oil
Since early 2020, oil prices have taken a wild ride due to demand and supply.
Initial demand collapsed when lockdowns were in effect. However, supply issues emerged later, leading to concerns about 2021.
According to OPEC estimates in 2019, the global oil demand was at 100.1 millions barrels per hour. This figure has not recovered fully yet.
Russia-Ukraine conflict has caused the oil market to crash again. Russian crude sanctioned by the U.S.U.K.
During Asian trading hours U.S. oil futuresThey were 0.3% higher at $106.38 a barrel while the international benchmark was up 1.3% Brent crudeThe barrel was 0.12% higher at $109.46/barrel
However, higher oil prices could dampen consumer demand. This would be independent of the pandemic.
Capacity for airline seat
Because many countries had closed their borders, the epidemic impacted particularly heavily on the travel industry.
According to OAG, a global provider of travel data OAG, weekly seat capacity has fallen dramatically but it is far below the average in 2019.
“Global weekly seating will be at 82[million]The company stated that overall capacity was 23% lower than the previous week of 2019, in an update posted on March 7.
OAG stated that by May mid-May, the airline capacity will reach 100,000,000 seats per week.
CNBC calculates that 2019’s average weekly capacity for seats was 110.716,079.
Unemployment
All over the globe, job losses were caused by lockdowns. After World War II, America’s unemployment rate soared to 14.7%.
Other countries also have higher unemployment rates.
As a baseline, we can see that the unemployment rate in Germany and China has returned to pre–Covid levels using December 2019 data. Japan and the U.S. still report slightly higher unemployment rates.
Rates of interest
To support the Covid spread, central banks cut interest rates by 2020 in order to encourage the economy.
South Korea and the U.K. have raised their rates since then, and the Federal Reserve will likely do the same at its March meeting.
Despite this, interest rates remain at a fraction of what they were prior to the pandemic.
Government debt
To protect the economy against the consequences of the pandemic, the government has spent more.
The Bank of International Settlements data shows that the ratio of government debt to gross domestic product has increased over time and is still much higher than in pre-Covid.
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