Prepared for Mathieu F. | Delivered August 17, 2020
Industry Investment Capability and COVID-19 Impact 2020-2021
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To determine which industries are most and least likely to have investment capability in the next 12 months, in view of COVID-19's global impact. Research will help guide decision-making regarding commercial targets.
World Investment Report June 2020
The 30th annual
World Investment Report
published in June 2020 identified industries that are most and least likely to receive foreign direct investment (FDI) in light of COVID-19's economic impact.
According to the report, investment promotion agencies expect that the
information and communication
industry is more likely to yield investment projects (
The industries of
food and beverage
are also more likely to yield investment projects in light of COVID-19 (p.10).
On the other hand,
industries that were directly hit by lockdown measures are expected to suffer.
transportation and storage
, see also Table I.2 on p.6).
industries are also projected to suffer from COVID-19 as well as falling oil prices (p.5).
Some industries in
are also affected by supply chain disruptions (p.5).
These industries are projected to
lose a significant percentage of earnings
which may affect their investment capability through 2021.
S&P Global April 2020 Report
S&P Global published its report "
Industries Most and Least Impacted by COVID-19
from a Probability of Default Perspective
March 2020 Update" on April 7, 2020.
The article calculated a
probability of default (PD)
using stock price movements and asset volatility to determine the most and least affected industries.
According to S&P Global, the
top 5 industries most impacted
by COVID-19 are airlines, casinos and gaming, leisure facilities, auto parts and equipment, and oil and gas drilling.
are affected by grounding of air traffic and border restrictions which have raised concerns about viability of several airline brands.
Casino and gaming
as well as
have been impacted by the implementation of social distancing as well as postponement of sporting events including the Summer Olympics.
auto parts and equipment
industry has benefited from government stimulus packages, the
oil and gas drilling
industry suffered from low demand due to travel restrictions.
On the other hand, the
affected by COVID-19
are property and casualty insurance, health care REITs, multi-line insurance, life and health insurance, and industrial REITs.