The pandemic was not only a sanitary crisis but produced a financial crisis as well, with the impact felt all over the world. In the United States alone, the proportion of people out of work hit a historical 8.9% according to the International Monetary Fund, signaling an end to a decade of jobs expansion. Apart from the increasing unemployment rate, millions of workers have also been put on government-supported job retention schemes as parts of the economy (tourism, hospitality) have come to a near standstill. Shops and restaurants closed their doors altogether or opened with low seating capacity and low demand to dine in. Nonessential travel evaporated, causing massive lost revenue for not only airlines and cruise ship operators but also smaller businesses that rely on tourism dollars. And that 8.9% was not the maximum, as the national unemployment rate climbed as high as 14.8% in April 2020 in many economies globally.

Those economic shockwaves were felt from Beijing to Madrid, creating a drag on the world’s economy that hasn’t been seen for decades. In October 2021, the International Monetary Fund revealed that the global economy contracted by 3.1% in 2020—the worst slide in recent memory. 

With many variants of the viruses coming up one after another, this situation prolonged more than anybody would have expected at the beginning. Even though there are no more official measures in place right now, the effects of the pandemic will long be felt.


Even though things are going back to normal, specialists, economists, and actors in the financial sector agree there will be a severe negative impact on the global economy.

One of the biggest causes of damage caused by the pandemic was a fall in demand as fewer consumers are willing to purchase goods and services available in the global economy. This can be seen especially in industries such as travel and tourism.

Most of the discussion about the impact of the pandemic focused on short-term effects but there is a risk that economic development will also be negatively affected over the longer term. The negative forecast includes a weaker growth in production, changes in the economic sectors, and low demand in various domains.

With restrictions lifted in the present, it seems to be hope but people are not so optimistic as they still have a small purchasing power, they face instability at work, currencies are devaluing and things worsen day by day due to the military conflicts that rise lately.

In short, among the biggest problems that await us from now on are the rising energy prices, the monetary tightening which stresses the global economy, particularly those sectors on weak economic footing, and the backdrop of macroeconomic conditions that increase the likelihood of an imminent crisis.

Moreover, more and more experts identify this period as stagflation. In other words, a combination of increasing inflation and stagnation of economic output.


Nobody knows what will come next, but considering the facts and data we have so far, the future doesn’t look good for those who rely only on the traditional monetary system.

In fact, with the accelerated increase of the prices, we will afford less with the same amount of money, which will lead to low quality of life. Furthermore, this means our money will be worth less as time passes by, and we will have fewer opportunities to grow our capital as we will have the chance to access even fewer projects in the market.

For a small investor, this means that the amount of money they worked for and saved so far will not be enough to obtain financial security.

With economic instability and a constantly growing inflation, the need for alternative streams of income becomes inevitable. In short, to transform our future, we need a stable, safe solution to protect us from all these negative effects of the present conditions.