FX.co ★ 5 economies with best prospects for recovery after COVID-19 pandemic

Denmark

Shortly after the outbreak, Denmark’s authorities imposed radical restrictive measures such as social distancing, shutdown of schools and most firms etc. In mid-March, the government banned all non-residents from entering the country. Such prompt moves made a benign impact, so the number of the coronavirus cases contracted. The measures owe their successful implementation to the high public confidence in the authorities. Moreover, the Danish government and public agencies are known for low corruption. To sum up, Denmark’s authorities take the lead by launching sensible restrictive measures. So, employers are obliged to pay 90% of wages and 75% of salaries to the people who do not work during the lockdown.

Singapore

This city-state launched immediate measures to contain the COVID-19 spread. This ensured one of the lowest contagion rates in the world. The public trust in the authorities and strict obedience to lockdown measures have stamped out the outbreak. The country’s advantages are a powerful economy, low political risks, minor corruption, and excellent infrastructure.

US

At present, the US ranks first in terms of the death toll and the number of the coronavirus cases. Nevertheless, experts are certain that the largest global economy will cope well with the pandemic. The US authorities have adopted an unprecedented stimulus package to shore up the national economy. Among such measures is the biggest ever financial aid worth $2 trillion, social distancing, lockdown etc. These restrictions are expected to mitigate the COVID-19 fallout and cautiously revive the domestic economy. Most analysts predict a V-shaped development of the US economy. In other words, a sharp contraction in the first half of the year will be followed by a robust recovery in the second half of 2020.

New Zealand

Here, the authorities came up with prompt counter-measures. The state border was locked for foreigners in late March and some factories were suspended. New Zealand is well-known for its high-level corporate management and flawless logistics. Currently, the country is facing economic troubles due to a drop in exports and a sleep mode in the holidaymaking industry as the national economy rests on these two pillars. Nevertheless, drastic measures taken by the government reduced the infection rate. Thus, the odds are that New Zealand’s economy will regain footing in no time. Experts say that a low public debt and ultra-loose monetary policy will also contribute to a fast recovery.

Rwanda

Remarkably, economists point out a number of factors to help this African country gain momentum rapidly after the epidemic. Rwanda has the background of the efficient fight against similar deadly viruses. In 2019, the authorities managed to contain the Ebola virus disease shortly after its outbreak in the neighboring Republic of the Congo. Rwanda was the first country among African states to the South of the Sahara desert to introduce complete lockdown. Rwanda has a developed public healthcare system available to all citizens. Experts are sure that the country is capable of tackling the fallout from COVID-19.