We need to understand the fact that the cause behind the 2020 recession was the demand side abnormalities. This particular shock is going to affect the demand in the long run because once people’s tastes and preferences change towards things that were offered to them as substitutes for that consumption, they are going to build that taste further and the demand for those goods is going to die forever.
So we can’t really argue that if the demand is low right now, it’s going to increase later. That’s never going to happen because this is clearly not how an economy functions.
Therefore, the two obvious reasons why recession 2020 was a misfortune is that firstly, it leads to an economic slowdown due to the demand side meltdown. Secondly, it causes people to lose jobs. As a result, they stop investing more because their disposal income and savings tend to deplete.
There might be a recovery in the organised sectors, but what about the stress in the unorganised sector? Because of the stress of the unorganised sector, they are vacating their spaces as they are unable to maintain their business, the larger sector is then taking on that space. This recovery will create inequality in the country.
The only positive I see was majorly for the IT-based firms. The work-from-home models cut down enormous costs of big companies such as the maintenance of those large buildings. This was visible as we saw such a drastic increase in the stock value of so many IT-based firms.
To conclude, recession 2020 cannot really be termed as a boon for any economy, we already saw how people suffered and the number of jobs that were lost was “not a small number”.