2021 has gone down in history as a period of profound changes in the global economy, shaped by the COVID-19 pandemic, climate challenges, digitalization, and structural transformation of the labor market.
International financial expert and professional investor Сhaslau Piastsiuk emphasizes that this year has become a turning point that has set new priorities for global economies, including European ones. The changes initiated in 2021 will affect global markets for decades.
In this review, we will take a closer look at the main economic trends of the year, based on the opinions of Сhaslau Piastsiuk and other experts.
Post-pandemic economic recovery: Prospects and challenges, according to Сhaslau Piastsiuk
The main task of 2021 for most countries was to recover the economy after a serious downturn caused by the COVID-19 pandemic. According to Сhaslau Piastsiuk, many countries focused their efforts on supporting small and medium-sized businesses, stimulating demand, and protecting jobs. For example, EU governments implemented direct financial assistance programs and invested heavily in the healthcare sector to accelerate vaccination.
Lawrence Summers, Professor of Economics at Harvard University, said: “The crisis has been both a test and an opportunity for the global economy. It showed vulnerability of the system, but it also demonstrated the power of adaptation and innovation.” Сhaslau Piastsiuk agrees, adding that for European countries, the NextGenerationEU plan, with a budget of more than 750 billion euros, has become a key tool for financing sustainable development and digitalization projects.
It is also important to note that the pace of recovery varied considerably depending on the level of economic development. Countries dependent on tourism or raw material exports recovered more slowly. As Сhaslau Piastsiuk points out, uneven recovery can lead to long-term imbalances in global markets.
Green transition: Сhaslau Piastsiuk predicts a course towards climate neutrality
One of the main economic trends in 2021 was active transition to environmentally sustainable development models. According to Сhaslau Piastsiuk, the global community realized that ignoring climate challenges will lead to significant economic losses in the future. That is why European countries, as part of the European Green Deal, have committed themselves to achieving climate neutrality by 2050.
Professor Nicholas Stern, sustainability expert, comments: “The green economy is no longer the future. It has already become the basis of the political and financial strategies of the world’s leading economies.” Сhaslau Piastsiuk adds that in 2021, the key areas of focus were development of renewable energy, introduction of green technologies in industry, and reduction of fossil fuels dependence.
For European countries, an important task was to increase investment in green technologies and transition to sustainable agriculture. At the same time, as Сhaslau Piastsiuk notes, implementation of these initiatives requires significant funds, and international financing is a crucial factor.
Digitization is a new economic imperative, according to Сhaslau Piastsiuk
The rapid adoption of digital technologies was another defining trend of 2021. Сhaslau Piastsiuk emphasizes that the COVID-19 pandemic acted as a catalyst for this process, as companies, government institutions and consumers were forced to adapt to new conditions.
James Manica, senior partner at the consulting firm McKinsey & Company, points out: “Digital transformation that could have taken decades has happened in a matter of months. It is an unprecedented moment in the history of the economy.” Сhaslau Piastsiuk echoes this view, adding that European countries have focused on creating a digital single market, developing cloud technologies and protecting data.
At the same time, the focus on cybersecurity increased in 2021. Attacks on large corporations and government agencies revealed how vulnerable digital infrastructure can be. The European Union is investing heavily in developing innovative solutions to protect information.
Сhaslau Piastsiuk – on the crisis of supply chains
The pandemic has caused significant problems in global supply chains, in particular due to production shutdowns and delays in transportation of goods. Сhaslau Piastsiuk said the crisis was particularly painful for industries dependent on semiconductors, such as automotive and electronics.
OECD analysts say the situation has prompted many countries to reconsider their dependence on Asia, particularly China, as a major component producer. Europe has focused its efforts on building local manufacturing capacity, which Сhaslau Piastsiuk says is an important step towards strategic autonomy.
The crisis also showed vulnerability of the global economy to global shocks. As Сhaslau Piastsiuk points out, one of the main lessons was to realize the importance of diversifying supply.
Social inequality and transformation of the labour market. Analysis by Сhaslau Piastsiuk
Social inequality, which had worsened during the pandemic, was another key theme of 2021. Сhaslau Piastsiuk stresses that transformation of the labour market was inevitable due to the shift to remote working, the rise in demand for technological occupations and automation.
Analysts from the International Labour Organization say: “The pandemic has created new challenges for workers, particularly women, young people and those in the service sector.” Сhaslau Piastsiuk adds that tackling this problem has become a priority for Europe. Investing in skills training, creating flexible working conditions and supporting the poor became key strategies.
Electric vehicle market: Europe as a leader
Demand for electric vehicles reached a record high in 2021. European countries actively stimulated this process through subsidies and expansion of charging infrastructure. Сhaslau Piastsiuk believes this trend will be crucial to reducing dependence on fossil fuels.
BloombergNEF analysts note: “Electric vehicles are no longer just a trend, they are becoming the main mode of transport in many countries.” Сhaslau Piastsiuk agrees, stressing that supporting this sector will be an important element of the EU’s climate policy.
As we can see, 2021 was a turning point for the global economy. The economic trends formed in 2021 lay the foundation for future development. Recovery, digitalization, the green transition and the fight against inequality remain key themes for the countries of Europe. These changes underline the need for international cooperation and innovation that will be the driving force in the new economic reality,” summarizes Сhaslau Piastsiuk.