The economy might take a few blows, but we’ll manage
There is a great challenge waiting ahead of us. Back in January, the International Monetary Fund (IMF) projected the world economy to grow around 3.3% in 2020 compared to 2019. Sadly, the arrival of coronavirus changed everything, resulting in the tragic loss of a large number of human lives, forcing the world to go on lockdown in the process.
The worldwide quarantine may have helped flatten the infection curve, preventing further deceases, but it also meant production was halted all around the globe. As of April, the world economic outlook was projected global growth to fall -3 percent. This has been referred to as “the world economy experiencing the worst recession since the Great Depression.”
What does this mean for the world economy in 2021? Assuming the pandemic is under control by the second half of this year, the IMF projects the global growth to rebound 5.8 percent. This is only a partial recovery, though, as it is estimated that the cumulative loss to global GDP over 2020 and 2021 could be around 9 trillion USD.
But, even in the face of economic recession we can always find a way to get back on our feet. Strategies to adapt your production to local markets, such as regionalizing your supply chains, can lessen the effects of the economic stagnation.
It has been proven that strategies like these would make better use of your assets and lowe your transportation costs, besides contributing to the local community’s growth. Bit by bit, this will help improve the world economy.
Minimizing the effects of the slump over your company will be crucial to rise again in 2021, what better way to do it while also preventing further risks by having a regional supply chain. Here in VYNMSA, we would like to assist you with all your needs in settling your company in Mexico.
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Sources: International Monetary Fund, Forbes