The coronavirus pandemic killed more than 2.35 million people and brought down the world’s economy in 2020. The new year of 2021 started with optimism due to the application of vaccines around the world. But unfortunately, economic recovery can be more complicated and distant than expected.
Uncertainties about mutations put economic recovery at risk
The enthusiasm that vaccines application brought to the world in late 2020 was weakened by the discovery of new variants of the coronavirus. The variants were first identified in the United Kingdom, Brazil, and South Africa. However, they are spreading rapidly to other continents and countries.
Medical authorities do not yet know many details about the variants. But the new mutations are known to be more aggressively contagious than the original variant that emerged in Wuhan, China, in 2019.
Another concern that is holding back economic development, especially in the United Kingdom, is that variant B.1.1.7. It appeared in the country and has been circulating for months, and may undergo a new mutation. With this, it will further distance itself from the original variant. Thus, it puts at risk the effectiveness of the vaccines developed by Pfizer/BioNTech and AstraZeneca applied in the country.
So far, there are no guarantees!
There is still no certainty about the resistance of the variants to the vaccines developed.
In the economy, these uncertainties translate into the caution of investors and companies. They may decide to hold back on investments until more concrete answers from the medical community emerge.
Strong economies, such as Germany, are extending the lockdown. Thus, they are postponing the decision of keeping summer holidays until the variants get under control. Others, like the United States, are trying to stimulate the economy and loosening Covid-19 restrictions by reopening bars, restaurants, and sports arenas.
Virus mutations threaten vaccine efficacy and delay economic development
The hope of an economic recovery in 2021 is highly dependent on the effectiveness of vaccines against new mutations.
Although the vaccination process is slow, it is still the most effective way to recover the enthusiasm of investors around the world and reduce unemployment rates. However, with the virus mutations, there is a lot of uncertainty in the air about the effectiveness of immunization.
Everything indicates that the economic recovery will be slower than expected and, above all, inconsistent. While some countries are focusing all their efforts to vaccinate the population as soon as possible, others still do not have an effective immunization plan. Recovery will not be the same in all countries. So, it will be even slower for those who are unable to control the virus and its variants. Follow more news on our website!