Will the vaccine rollout boost the global economy and help businesses recover faster from the pandemic shock?

Op-ed by Hisham Al Gurg, CEO, the Seed Group and the Private Office of Sheikh Saeed Al Maktoum

 

2020 will be remembered for the unforeseen challenges it brought about, the unprecedented ways in which businesses around the world have been affected, and the unexpected losses that communities have suffered globally. But the good news is – 2020 is now a chapter in history. We have entered a new year—a year of hope, a year of expectations, and a year we wish waves a magic wand and sets things right. And the vaccine roll-out is pretty much that magic wand.

Most of the 2020 budget was spent waiting for a solution to the pandemic. Finally, when successful vaccine trials were announced, the world was swept away with an instant state of joy and relief. This elation was further sustained as countries across the world announced their individual vaccine administration plans. Now, the world is in a state where vaccines are being administered, and we are already looking forward to a Covid-free world.

So, what does this mean for the global economy? How does this translate for businesses that have suffered as a result of the pandemic? How does it help those industries whose revenues were canceled in 2020 due to compulsory lockdowns and other restrictions?

Global think tanks say that the impact so far has been positive and will continue to be so. The International Monetary Fund recently revised its growth estimate for the global economy, citing the rollout of Covid-19 vaccines as an enabling factor. As forecast by the IMF, the global economy is now set to grow by 5.5 per cent in 2021. This figure is 0.3% higher than the IMF’s estimate for the previous year. This indicates a much-needed rebound. Overall, the vaccine rollout has given rise to an optimistic market sentiment and the industries are bracing up for a rebound and the much-needed recovery is in sight.

We, at the Seed Group, have also felt the uptick of economic activity. Over the last few months, we have seen a buoyed interest from global businesses that have approached us to make Dubai their new businesses home, given the rate and speed of recovery that the whole country is experiencing.

However, we must not forget that there is still a long way to go. With the intermittent news of the mutation of the virus and the threat of the second and third waves of the pandemic occurring, we cannot afford to be careless. It is with the utmost care, commitment and focus that we will be able to see the light at the end of the tunnel and enjoy the fruits of the much-needed economic recovery in the UAE and around the world.

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