Economic Resurgence

Economic Resurgence

After the worst year for the global economy since the Great Depression, the West looks set for a vigorous rebound as mass vaccination against Covid-19 propels a return to more or less normal life.

The revival, though, will come in stages, as the timing and speed of recoveries in North America and Europe will depend largely on the pace and reach of vaccination, economists say. Economies in North America and Europe are expected to fire up as shops, restaurants and hotels throng with newly inoculated consumers armed with savings they amassed during the long pandemic. Moody’s Analytics estimates households world-wide had $5.4 trillion in pandemic-related savings at the end of the first quarter.

Countries such as the U.S. and the U.K. are expected to enjoy quicker consumer-led recoveries as their governments close in on vaccination goals. Data Thursday are expected to show the U.S. growth accelerated in the first quarter as coronavirus-related restrictions eased and vaccination coverage increased.

In Europe, where vaccination drives have been beset with supply hiccups and worries over side effects, economies are likely to take longer to shake off their lockdown-induced torpor. Data Friday are expected to show the 19-nation eurozone shrank in the first quarter as chunks of the currency area reimposed public-health restrictions to tame new waves of infection, though more up-to-date business surveys suggest growth was already coming back in April.
As the COVID-19 pandemic spreads across the globe, cash-in-hand has become important again. This is because myriad investments across sectors now lie in uncertain terrain. Adding to everyday woes is the fact that many companies are considering layoffs or delayed salaries. Access to one’s own savings has become a luxury. Here’s how you can get your moolah in these dire times.

This all-weather fund is most helpful during times of crisis. Retirement fund body EPFO claims that it processes all KYC compliant applications within 72 hours. During the lockdown itself, it has settled 1.37 lakh provident fund withdrawal claims worth Rs 280 crore to provide relief to subscribers.
PFRDA or Pension Fund Regulatory and Development Authority of India on Friday said NPS (pension scheme for central, state governments, autonomous bodies and corporates) subscribers will be allowed partial withdrawal for covering expenses related to the treatment of coronavirus.
The IT department has announced that it will be issuing pending IT refunds up to Rs 5 lakh as soon as possible to individuals and businesses in the wake of COVID-19 pandemic.

The indirect tax wing also announced that it will release all GST and customs refunds to MSMEs. This will put money in the hands of small businesses, thus releasing more money in the economy.