During the recent coronavirus pandemic, many workers were unable to find work. This was particularly true in low and middle income countries. The pandemic affected different sectors of the economy, especially the hospitality industry.
In high-income countries, the economic impact of the pandemic was relatively limited. But in lower-income countries, the impact was much larger. Several workers did not find work because they were unable to earn an adequate wage.
Although the global economy has recouped to pre-pandemic levels, the economic crisis has not been fully resolved. Governments need to strengthen their financial resilience and increase efficiency. Increasing the risk of loan defaults could destabilize the economy as a whole.
A new report from the IMF warns that the economic recovery is becoming more unequal. During the pandemic, extreme poverty grew for the first time in 20 years. It is expected to continue to rise in the coming years, but the effects will be less pronounced.
In the UK, the government launched policies to help businesses recover and to support workers. They aim to increase employment opportunities and reduce the uncertainty of the economy.
Global tourism was one of the sectors most negatively impacted by the pandemic. Travelers were disrupted by closures of hotels, restaurants, and recreational centers. As a result, revenue from nonessential travel evaporated, causing a loss of income for the global market.
While the global economy has recovered, the impacts of the pandemic on lower and middle income countries have been devastating. More than 45% of the workforce in these countries were affected, with more than 200,000 workers unable to work without pay.
