Smart tech will drive rapid economic recovery post-pandemic

COUNTRIES around the world, including Singapore, have reported major contraction in economic growth in recent quarters. Since the start of the novel coronavirus pandemic early this year, economies have been badly hit due to lockdowns imposed to contain the spread of the virus. Hence the global economy is in recession, jobs have been lost and many companies are on the verge of collapse.

The convention wisdom is that it will take several years for all countries to recover from the current crisis. However, that may not necessarily be the case. Once the pandemic is tamed, the economic recovery could be "U" shaped reflecting a sharp turnaround. There are two reasons for this optimism.

The first is that if we look back in history, 102 years ago, in 1918, the Spanish flu wreaked havoc across the globe, with the death toll estimated at between 40 million and 50 million. The domino effect of the Spanish flu on the global economy was very similar to today's situation. Yet, within two years - from 1920 - started what is now referred to as the "Roaring Twenties", a period of robust economic growth particularly in the United States. In the decade 1920-1929, the US economy led the world in growth and the country's wealth more than doubled.