Since the onset of Covid-19, global economic recovery has been tracked through 5 charts.
- The coronavirus pandemic caused oil prices to drop, travel to stop, and unemployment rates to rise in early 2020.
- Since the WHO declared Covid a pandemic two years ago, CNBC examines the impact on oil demand, air travel capacity, unemployment rates, interest rates, and government debt.
The coronavirus pandemic caused oil prices to drop, travel to stop, and unemployment rates to rise in early 2020.
The global economy has started to recover, with stock markets rebounding and surpassing 2019 levels. However, the pace of recovery varies across regions and industries.
Here are five charts that illustrate the extent of the world's recovery from the Covid pandemic, two years after its declaration by the WHO.
Demand for oil
Since early 2020, oil prices have experienced significant fluctuations due to a combination of demand and supply influences.
Supply concerns emerged in 2021 as demand for goods and services first decreased due to lockdowns, but later gradually increased, causing supply chain issues.
According to OPEC estimates, global oil demand in 2019 was 100.1 million barrels per day and has not fully recovered yet.
The oil market is in turmoil due to the Russia-Ukraine conflict, as the U.S. and U.K. imposed sanctions on Russian crude.
During Asian trading hours, Brent crude was up 0.3% at $106.38 per barrel, while the international benchmark was up 0.12% at $109.46 per barrel.
The likelihood of reduced demand due to higher oil prices is not linked to the pandemic.
Airline seat capacity
The pandemic severely impacted the travel industry, with many countries shutting their borders and urging citizens to remain indoors.
According to OAG, the weekly seat capacity dropped drastically before recovering, but is still far off from the average in 2019.
The company announced on March 7 that the global weekly seats will be 82 million, which is 23% below the same week in 2019.
OAG predicts that airline capacity will reach 100 million seats per week by mid-May.
In 2019, the average weekly seat capacity was calculated to be 110,716,079 seats, as per CNBC's calculations.
Unemployment
The pandemic resulted in a surge of job losses globally, with the US experiencing an unprecedented 14.7% unemployment rate.
Jobless rates also increased in other countries.
Unemployment rates in China and Germany have mostly recovered to their pre-Covid levels, while Japan and the U.S. still have slightly higher unemployment rates.
Interest rates
In 2020, interest rates were reduced by central banks to bolster the economy amidst the Covid pandemic.
The U.K. and South Korea have already increased their rates, and it is anticipated that the Federal Reserve will follow suit during its March meeting.
Interest rates are currently lower than they were prior to the pandemic.
Government debt
The government allocated more funds to safeguard the economy against the economic consequences of the pandemic.
Government debt-to-GDP ratios have increased and remain higher than before the pandemic, according to data from the Bank of International Settlements.
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