The Aftermath of COVID-19 on Industries and Economy
To outline anticipated impacts or COVID-19 aftermath on industries such as commerce and the U.S economy in general.
- As a human tragedy, the coronavirus pandemic continues to affect people around the globe. As a result, the global economy has slowed down and business leaders have gained perspective on the implications of the outbreak for companies and the workforce in general.
- Coronavirus has continued to threaten the economy as it has disrupted the global supply of goods, thus making the U.S firms find it difficult to level up to the demand. The workforce has also been jeopardized with the stay-at-home directive, which in turn has reduced labor supply and slowed the production of goods and services for the U.S.
- More employers will likely be forced to look into automation and robot’s infiltration will dominate the workforce, which will increase labor productivity to overcompensate the lost time. Robots are also immune to pandemic outbreaks.
- To successfully assess the possible impact of the pandemic on the economy, experts have applied both epidemiological profile on the virus, as well as assessing how consumers, businesses and global governments are responding to COVID-19.
- Economists are applying the SARS epidemic to contextualize the coronavirus outbreak and the aftermath effects. Going by the past patterns, the 2003 SARS epidemic shaved 0.5% to 1% of China’s economic growth that year, leading to global economic costs of approximately $40 billion (0.1% of global GDP).
- As global supply chains continue to be disrupted, the demand for goods and services will continue to strain the economy, not only in the affected economies but in the U.S as well. Exporters will reduce their supply from the U.S to other economies in the coming months.
- Due to strained supply chains, households, economies, and governments around the world will incur even more debts than they did before the pandemic hit.
- The aftermath will shape economic losses as economies try to recover from supply chains, demand, and financial markets. As a result, various aspects of the economy such as business investment, international trade, and household consumption will continue to struggle.
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