World Trade Center Northern California had the pleasure to welcome Pete Mento to speak at its "Global Outlook 2021" webinar on January 26, 2021. Mento gave an insightful rewind of the historical events of 2020 that impacted our global economy – the COVID-19 pandemic, the ensuing economic crisis, ongoing trade wars, and "solar winds" (the largest cyber-attack in history). He discussed trade, transportation, economic recovery, and a post-COVID world. We invite you to watch the webinar recording.

Consumption, A Factor of Economic Recovery
Discussing IMF's estimated global GDP growth of 5.4 percent for 2021, Pete is cautiously optimistic. He ties growth to an increase in consumption by the West and continued positive output from the East and believes recovery will depend, in part, on COVID vaccination distribution. The length of time it will take for people and businesses to re-engage within a social environment will have broad implications on the economic recovery.

The U.S. and European economies have slowly begun to recover. In contrast, Asian economies rebounded by the end of 2020 and head into 2021 better positioned. Mento noted BREXIT could have a more profound impact on European Union markets than expected.

What Can We Expect To See In The Recovery?

Acceleration of the innovation economy – refocusing efforts on developing and investing in ag-tech, medical devices, aerospace, and space exploration.

Congressional bailout for air carriers – continued decreased spending in domestic and international travel will require additional financial intervention for the U.S. airline industry.

Strategic national stockpiles of PPE – expect an injection of massive U.S. legislative spending to manufacture protective gear.

Research in the automation of goods manufacturing and supply chains – COVID demonstrated the impact to production and supply chains absent automation. Investment in robotics and supply chain automation will stimulate economic growth and job creation.

Supply chain cybersecurity – the U.S. government will look to investigate and invest in securing ports and infrastructure from cyber-attacks.

Pete believes that we will continue to experience economic headwinds through the first half of the year and can expect to feel the recovery take hold by the end of 2021.

Pete Mento is a global customs and trade consultant and host of TradeGeek Podcast, a humorous, non-political discussion on international trade and customs, logistics, supply chain, and economics. Supported by the World Trade Centers Association, TradeGeek Podcast enjoys over 10,000 followers.

Please subscribe to receive information on upcoming events.