BCC Research Blog | Industry Analysis and Business Consulting

Impact of COVID19 on the Global Economy

Written by Sarah Greenberg | May 8, 2020 3:25:39 PM

These days, we're all wondering the same things:

  • How will the economy be affected by COVID-19?
  • What's in store for the economy in the months and years ahead? 
  • Are we headed for a recession?
  • What do I need to do to prepare my business or organization for impending economic shifts?
Our analysts begin to answer these questions in our latest report, The COVID-19 Fallout: BCC Research Report on the R&D, Economic Impact and Future Implications.
 
Below are a few of our predictions about COVID-19's impact on the global economy. These predictions can help you begin to develop your company's strategy for staying successful during a worldwide pandemic.
 
 
 
Quick Recovery

In China and South Korea, policy initiatives, healthcare response and social distancing measures have resulted in containing the virus, to a certain extent.

Global Slowdown

Worldwide, production stock has dropped due to the virus's prolonged effect. Supply chains, the consumer goods industry and manufacturing sectors have been adversely affected, along with the retail industry. Many companies face bankruptcies. In the U.K., for example, airline carrier Flybe has collapsed.

Pandemic and Recession

In this scenario, if the virus is not seasonal (as healthcare experts assume), infection cases will continue to grow in the second and third quarter, and healthcare systems will be overwhelmed. The surge of new cases will delay recovery in consumer confidence to the third quarter or beyond, which may lead to recession, with global growth in 2020 falling to 1.5% or less.

For additional intel into the impact of COVID-19 on the global economy, download a free overview of our full report, The COVID-19 Fallout: BCC Research Report on the R&D, Economic Impact and Future Implications.