Lockdown measures implemented due to the Covid-19 pandemic have led to contraction of GDP levels globally.
Research indicates that some of the damage caused by the pandemic may be undone by lifting the restrictions.
The lockdown measures, however, should be lifted based on a strategic approach to avoid the threat of a second wave of infections.
Gregory Daco, Chief US Economist at Oxford Economics, shared an article on how lifting of lockdown restrictions in China helped in returning the industry value to positive levels in April.
Retail sales, however, were lagging due to consumers’ maintaining voluntary social distancing.
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The article notes that based on the trends in China, the global economy may start to expand again if the lockdown restrictions are lifted.
Consumers may start to spend on goods and services that they could not purchase in the second quarter but will also cut back their spending on other areas, the article added.