Forecasts and Trends: COVID-19 and the Global Economy
The world has seen an abrupt and disturbing impact due to the COVID-19 pandemic. From daily life to how business is run, everyone is feeling the pain of these times. As a matter of fact, the World Trade Organization recently said they expect “world trade to fall by between 13% and 32% in 2020 as the pandemic disrupts normal economic activity and life around the world.” An incredibly large decrease, most of this drop is due to the fact that only “essential” businesses have been allowed to operate and manufacture during the crisis.
As a result, many industries have shifted gears so that they can stay relevant and continue to produce revenue.
Yes, it’s true. By selling some kind of essential or medical supplies, companies that would have had to close were allowed to stay open. The production of face masks by brands like Alice + Olivia, Gap, Zara, Brooks Brothers, Chanel, Louis Vuitton, and hand sanitizer by ORLY, CHI, BioSilk, Estee Lauder--just to name a few--is going full-throttle. Working hard to stay open, keeping their employees going to work and to sell products, these companies are trying to combat the economic downfall. General merchandise retailers in the United States that offer a grocery section such as Target and Walmart have also been allowed to remain open, and have even seen a boost in revenue compared to pre-pandemic times. However, the job and income losses globally are increasingly weighing on the economy, dampening demand on any kind of supplies as consumption for them is restrained.
Painfully low economic forecasts.
Unable to fully predict exactly what will happen to the world economy in the coming year or years, most experts agree that this slump will be worse than the 2008-2009 economic fall. Supply and demand shocks to the economy have collapsed trade, ultimately resulting in fluctuating prices on food, gas, and other essentials as well as stocks. Already the market has hit a low worse than 1987, bouncing back and then some the very next day. The eventual predictability of the market and other economic indicators is still unknown in these novel times.
As a lot is still unknown and as more unfolds throughout the pandemic, things will undoubtedly change; that’s certain. Although lawmakers are working on relief plans for citizens as well as companies globally, what is also certain is that this will be a long road to recovery. Contact us today and see how our logistics experts can help you during these challenging times.