Five years after the World Health Organization first described the COVID-19 coronavirus outbreak as a pandemic, its effects are still being felt on the global economy.
COVID-19 and efforts to contain it triggered record government debt, hit labour markets and shifted consumer behaviour. Inequality has increased, while remote work, digital payments and changes in travel patterns have endured.
Though the immediate shock has passed, COVID-19's legacy continues to reshape global economies and markets.
Here are some of the main impacts.
DEBT, INFLATION AND INTEREST RATES
After countries borrowed money to protect welfare and livelihoods, global government debt has risen by 12 percentage points since 2020, with steeper increases seen in emerging markets.
The pandemic sparked high levels of inflation, which proved to be a major concern in the 2024 U.S. elections. Fuelled by post-lockdown spending, government stimulus packages and shortages of labour and raw materials, inflation peaked in many countries in 2022.
To offset rising prices, central banks raised interest rates, though the intensity of their interventions varied widely.
Yes it's really hard to survive these days
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