Uman NUH | today: 05/13/2023

Current issues of the global economy: changes in the global production in the post-pandemic period

Author(s) Mudrak R.P., Doctor of Economics, , Uman National University of Horticulture
О. В. ДОВГАЛЬ, , ,
Category Economics
year 2020 issue Issue number 96. Part 2
pages 116-131 index UDK 339:338.34.055:616-036.22
DOI 10.31395/2415-8240-2020-96-2-116-131 (Link)
Abstract Pandemic COVID-19 has caused deep financial crisis, the worst since the Great Depression and the recession in 2008. Compelled quarantine measures have resulted in dramatic drop of demand. Therefore raw materials markets have crashed following the financial market. First of all, it refers to oil market. On 20th, April the price of oil futures WTI was negative for the first time in history. According to the worst scenario total losses of the global economy are assessed more than 6 trillion USA dollars. Besides humanitarian tragedy (the death of hundreds of thousand people), pandemic COVID-19 enhanced the revision of the current scenario of economic globalization, revealing some of its drawbacks. This fact determines the necessity of scientific research in this direction. Growing internal needs of developed countries in medical products, including those, related to the treatment of COVID-19 in the pre-pandemic period, were covered at the expense of the growth of a corresponding import. If pandemic had a local character, it wouldn’t be a problem. However, the epidemic has seized the whole world, turning into pandemic. It started in China, the main supplier of individual protective equipment in developed countries. As a result, China left export products inside the country under emergency circumstances, and the main countries-importers faced a severe shortage of these products, which became one of the key factors of a quick spread of infection. This situation revealed the vulnerability of the current model of the global economy. Therefore, in the post-pandemic period developed countries will probably enhance their protectionist policy and increase the production volumes, aimed at import substitution, which can be the subject matter of national security. Increase in the production volumes in the EU in the post-pandemic period can face the labor force deficit, which will enhance the Ukrainian labor emigration. Possible enhancement of protectionist policy and the increase in the production volumes of finished products in developed countries will strengthen the orientation of the Ukrainian export on raw materials and deterioration of trading conditions.
Key words global economy, pandemic, deficit, import substitution, migration.
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