As the world continues to monitor the status of the global pandemic, there is a new emerging trend – a soft landing. This trend is one in which some of the hardest economic sectors, such as hospitality and retail, have seen some of the most significant reductions in job and activity losses.
The idea of a soft landing comes from the hope that the impact of the pandemic on the global economy may not be as bad as originally feared. In other words, the world economy may be able to avoid a deep recession or depression.
This development has been attributed to several factors, including government support and stimulus measures, unprecedented online commerce, and the flattening of the virus’ spread in certain countries.
Government support has been particularly crucial in helping to prop up small businesses, many of which would have been unable to survive during the crisis without it. Governments have been able to provide economic stimulus packages ranging from tax breaks to cash handouts, and, in some cases, they’ve even gone as far as setting up emergency funds to help businesses that are in especially dire straits.
Online commerce has also proven to be a lifeline for many companies, as consumers have been able to continue shopping from the comfort and safety of their homes. This has produced a spike in sales for many online merchants, which has kept them afloat during a time when traditional brick-and-mortar stores have experienced massive losses in revenue.
Finally, there is the flattening of the virus’ spread. Although it is still incredibly important to practice social distancing and wear face masks, there has been an overall decrease in the number of new cases in many developed countries, which has allowed for some areas to begin to shift back to more traditional economic activity.
Overall, it looks like the world is on track to have a soft landing, and possibly even start to see some economic growth over the coming months. Still, the risk of a second wave is real, so it is important to remain vigilant and follow all safety measures to ensure the pandemic does not spin out of control.