Global Economy in the COVID-19 Era. The Impact of the Pandemic on the Economic and Financial Systems

The transition from pandemic shock and adaptation to the new normal was gradual, affecting the social, political, but especially the economic spectrum. The global business was the first to adapt to the new situation and operate in a new paradigm. The spread of COVID-19 in the first part of 2020 affected all emerging markets, although some of them show more economic resilience than others. The impact has been determined or influenced by the form and magnitude of fiscal and monetary incentives, as well as the health systems efficiency. We are witnessing the emergence of obstacles to the free flow of capital, labour and trade. We are also witnessing a relocation of supply chains, a different complexity of US-China trade tensions and an increased risk of public debt among cloistered markets, resulting in an increased risk of default on sovereign debt.