Pandemic economy: current challenges and new risks

Abstract

Before pandemic the world economy had a pre-crisis situation which was characterized by unprecedented imbalances in the global financial and economic system, the lack of growth in world GDP, which posed a real threat to the world economic order. Almost all global analysts predicted a global economic crisis at the end of 2019. For the first time since time immemorial, bank interest rates in all countries have dropped to unprecedented low levels. Often interest rates were 0% or even negative. The EU’s financial system has been so disfigured by the VAT tax that fraud with this tax has reached a scale far exceeding hundreds of billions EUR and in fact got out of control of the authorities. The imperfection of the EU’s financial system led to Brexit, statements by the actually bankrupt Italy, and other countries about their intention to leave the euro zone. The EU was not able to adopt a budget for the next 7 years. The US trade wars with China, the US with Europe, the complete impasse of the Russian economy and much more led to the fact that the global crisis was already on the verge. The global recession was about to begin.