The world economy before, during and after the pandemic

Abstract

The article discusses the state of the World Economy before, during and after the Pandemic. The state of the Georgian economy has been analyzed, the external trade analysis of Georgia in the conditions of the pandemic has been made. Certain approaches have been developed in order to formulate recommendations for the Post-Pandemic Economy. The 21st century knowledge of the World Economy is somewhat similar to knowledge of the 20th century World Economy until 1929. Then and now everyone thought that everything is studied in economic science, we know everything well and we have the answers to all the challenges. It was also the characteristic of the recent period that the crisis of 2008 (also, atypical) had already occurred, but no relevant conclusions had been drawn. The feature of the 2008 economic crisis was that the crisis started not from overproduction or other economic fields, but directly from the financial sector. Overcoming the crisis was made possible by mobilizing huge financial resources, although the mechanism and underlying causes remained unexplored. The crisis of 2020 is completely different, we can directly call this crisis “artificial”, because the decision to stop economic activity was made independently, we made economic sacrifices to save people’s lives. It will be too hard to get out of the crisis, as the rush demand for products before the crisis has become a certain safety cushion for future reduced sales. This issue was well thought out by those who are in power in all states and they named the dates of the economic downturn from the very beginning. And yet, what did the crisis show? What lessons should we learn and what should we consider in the future? What are our export potential and opportunities? Which markets should become the best for better use of export potential? Georgian economists have expressed their positions on these issues (see ref: 1-13).