CAPITAL MARKETS DURING POSTCRISIS AND PANDEMIC: A GLOBAL PERSPECTIVE (2008-2020) IN THE CONTEXT OF INDUSTRY 4.0

Abstract

This study examines, using intelligent technologies, the evolution of global capital markets during two defining periods of the past decade: the global financial crisis and the COVID-19 pandemic. Analyzing data from 46 developed and emerging markets, we investigate changes in total GDP, market capitalization, and the market capitalization-to-GDP ratio from 2008 to 2020. The findings highlight crucial trends and dynamics in the world's financial markets. Over this period, total GDP increased by nearly 39%, reaching USD 71.2 trillion, while stock markets expanded almost fourfold to USD 94.4 trillion, market capitalization exceeding by 32% GDP in 2020. The United States reaffirmed its leadership position, experiencing significant growth in both its economy and capital markets. Hong Kong, China, exhibited remarkable market capitalization-to-GDP ratios, reflecting accelerated market development. In contrast, smaller economies such as Cyprus and Mauritius faced challenges in keeping pace. With disparities for the financial crisis recovery, the year 2020, marked by the COVID-19 pandemic, led to market declines in 22 of the 46 observed markets, including both European and global economies.

Keywords

• stock markets
• capital markets development
• global capital markets
• macroeconomic development
• industry 4.0