The emergence of the pandemic had a drastic effect on the world economy. Especially in the US, the unemployment rate went up to the highest than it has ever been in the past few years. The closure of businesses and the state-wide lockdowns resulted in crashing the economy.
Businesses had to declare bankruptcy and layoff their employees. Moreover, the government had to establish a system to pay loans to the businesses to keep them running. As these businesses, once the economy starts, will help boost the functions up.
The vaccine news by Pfizer is a ray of hope since its effectiveness had been tested through recent trials and it has passed many of the tests. The new vaccine shows about 94.5% effectiveness.
This has resulted in a rise in stocks. The US has decided to distribute the vaccine to people free of cost to develop immunity. This will result in a boost in the economy in the following year.
But the vaccine still has a long way to go. It has recently been released and needs time to be distributed across the country. This winter, therefore, will not be easy for people. The cases tend to rise, and many states seem to be already under or near the lockdown stage. The number of infected people keeps on rising.
Still the vaccine news demonstrates that the coming winters will not be as harsh as they had been predicted. The fear and anxiety will be reduced and the resumption of social activity can be expected. Other countries around the globe that had been widely affected due to the pandemic have started their operations. In China, industrial activity has resumed again and has been on the rise ever since.
It may take some time, but the vaccine will be distributed across the globe sooner or later. When this happens, countries can go back to the old normal. Trade and various social activities will also resume.
Neil shearing, a chief economist, said that life will be likely to resume back to its normal state in the next year.
