Finance

China dealing with the Second Wave

The Coronavirus seems like it’s fading away in Europe, but at the same time, the feeling that lingers is that this is just another period of the calm before the storm. In Beijing, new cases are emerging, and the lockdown there is becoming very strict since there is a new outspread. Risks are very high and, even though traders tend to stay optimistic. New cases are already considered as a “second wave” in China (earlier than expected), although the “first wave” is still going strong in Europe and especially the US. China started bouncing back in April, but now everyone seems worried and uncertain about the future of the economy.

The UK Approach

The United Kingdom is technically not part of Europe anymore. However, the death toll is still one of the greatest in Europe, the lockdown was pretty short, and they went with a different kind of logic, but they are probably one of the countries that suffer the greatest economic loss. Experts are saying that the British economy is going to collapse by 11.5%. If (and when) the second wave hits, the number is expected to reach around 14%. The government is trying to support companies as much as they can. Unfortunately, that is unlikely to be enough.

How India handles everything

India is the fourth most affected country in the world after The US, Brazil, and Russia. They went to the extreme, shutting down completely the economy. The virus is spiraling out of control, and Maharashtra remains the worst affected Indian city, with its latest cases at 104,568 sick people. The virus weakened a bit in May because of very strict lockdown, but it is still a problem that many people get infected without even knowing. Many of them aren’t tested for COVID-19. The cases started rising rapidly again, after the end of the lockdown. So, at this moment, India still can’t even think rightly about the economy.

The US fighting against the pandemic, system, and racism

Like previously said, it is tough to predict the consequences, but inevitably, they are going to affect us for another five years, at least. In the United States, spending on food services and accommodation rose for about more than 70% since they are still in the lockdown despite the ongoing political situation, while clothing purchases were down more than 40% since nobody is planning to travel or to “show off” somewhere outside. Surprisingly, even healthcare suffers since many appointments are postponed, and it’s unsure when it’s going to be safe to have check-ups again unless something unavoidable happens. For the first time in 18 years, the oil price in the US went down so rapidly that for the first time, a barrel costs under 20$, meaning it turned out negative, which is something never seen until this year. Nearly 80 million people in the US reported unemployment, which also affects the economy significantly.

What about South America?

From an economic standpoint, South America is doing pretty well. Everything needs rebuilding, and what is a better source than copper for that matter? In case you didn’t know, South America is the largest producer of copper in the world. You would be surprised how much copper is needed everywhere and for everything. Copper hit the highest price since January, so if you are actively trading or interested in the field, it would be good to check out how everything works these days.

Technology is still the most secure thing to invest in

One thing is for sure – people are still heavily relying on technology, and the industry can only grow higher. Exercising with friends on Zoom, throwing birthday parties online, and seeing your dearest despite the lockdown is one of the most important things to keep our sanity right. The economy is struggling, but it is evident that even during these trying times, there are pros and cons to everything, even if it’s pandemic.

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