The COVID-19 Economic Crisis (2020–present)

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The COVID-19 economic crisis, which began in 2020, is a global recession triggered by the pandemic. It caused unprecedented disruptions in economic activity due to widespread lockdowns and social distancing measures. The crisis resulted in a significant drop in global commercial commerce, with a 7% decline in 2020. Businesses lost substantial revenue, particularly in contact-intensive sectors and small to medium-sized enterprises. Governments responded with large-scale fiscal policies, including income support and debt moratoria, to mitigate the crisis's impact. The pandemic exposed economic vulnerabilities worldwide, highlighting the need for swift and coordinated responses to health crises. It led to increased inequality and unemployment, affecting low-income households and informal workers disproportionately. Despite these challenges, many economies began recovering by late 2020, with GDP levels returning to pre-pandemic levels in several major economies by 2022. The crisis underscored the importance of robust economic policies and international cooperation in managing global health emergencies.