As the world begins to slowly open back up, with businesses getting back to open fully, we are beginning to see signs of different countries’ economies enjoying their fastest growth compared to previous years. Global economic activity continues to show varying paces of recovery across countries and economic sectors, as the impact of the COVID-19 pandemic continues to weigh on the outlook.
This blog post is going to point to so many reasons that show hopes for a strong economic recovery post covid.
Successful and quick vaccination of the world will lead to the recovery of the economy. As more of the developed world’s population gets vaccinated, case counts drop and the weather warms up, more people are transitioning away from the lockdown lifestyle. Tracking activity from several sources has shown that everything from retail stores and recreation sites to transit hubs and offices has made a notable rebound from its lows. Communities may not yet be bustling to the same degree as they were before the pandemic, but we are getting there.
New Jobs and industries
The pandemic has resulted in many innovations which have led to the introduction of new industries and massive growth in some industries. Because of the need to connect, a lot of business have had to move their businesses online and there would continue to be an upsurge of this post covid. Companies emerging from the crisis are realizing that workforces require new capabilities to face the digital and environmental future. To flourish during and after the pandemic, companies need a new set of skills, including social and emotional, advanced cognitive, and digital capabilities.
Here are some examples of industries; virtual meeting platforms, dating apps, online teaching and education, E-Learning, Online fitness and many more.
Public consumption is the most direct indicator of economic recovery because it measures activity in industries that have been hit hardest by the pandemic — i.e., those that rely on consumers’ willingness to spend time in public, in proximity with people they don’t know. They include air travel, hospitality, restaurants, gyms, hair salons and other businesses required to shut down altogether at the outset of the crisis and that continue to operate under health restrictions today
Consumers are spending with so much gusto as they are amped up for the chance of having the option to do the greater part of the things they had been restricted to do in the previous year. JP Morgan reports that Overall card spending is 20% stronger than it was at this point in 2019 (and ~70% higher than at this point in 2020). * And as you might expect, given the rebound in mobility, consumers are spending again on hard-hit services such as restaurants, lodging and entertainment.
A Greener Economy
Recent weeks and months have seen a massive increase in policies and commitments to a greener world. The argument for global companies to reduce their greenhouse gas (GHG) emissions is clearer than it has ever been. Business operations around the world are now subject to greater climate and transition risks. Consumers are clamouring for eco-friendly products and responsible corporate behaviours. Investors are increasingly embracing capital-allocation strategies that take environmental, social, and governance (ESG) issues into account. Policymakers and government organizations are exploring the potential regulation of carbon emissions. McKinsey reports that in 2020, more than 4,500 companies worldwide self-reported their GHG emissions for public disclosure, and about 40 per cent of those companies have committed to specific emissions targets as part of their strategic and financial plans.
A greener economy results in an economy filled with so many opportunities. Opportunities for growth in jobs, income and a better standard of living. This positions the world economy from a bounce back from all the adverse effects of COVID and the recovery of economic stability.
All of these indicators offer insights about the likely pace of change in 2021and the fast and quick recovery of the economy. As the vaccine is distributed through the population in the first half of the year, confidence and public consumption behaviours will likely rise, helping determine the speed and magnitude of recovery from one of the most acute economic crises in U.S. history.
As a business, we have also seen some of the indicators. We have seen new roles being introduced and new skill sets being developed. We have also seen growth in our Clean Energy Business.
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