The Economic Impact of Covid-19
It is good to remember the world before the Covid19 pandemic, because that world will be history. The world will have a different behavior; socially, politically, technologically and of course economically. Here at Transliquid Technologies, we have felt this reality.
We have faced other pandemics of course. In the case of Ebola, despite the danger of the disease, it occurred locally and its spread was in a way slowed down because it was so lethal people could not roam freely through offices, streets and homes. Swine Flu, which had a global impact in 2009, came in an age where communication and social networks existed, but they did not have as much distribution in the general population. The number of computers and mobile phones did not permeate a large segment of the population.
From then to 2020, 9 times more mobiles have been sold. This makes the power of information (and disinformation) reach more people, creating another level of awareness. Awareness of what a virus is, how it behaves, how it affects health services and the generalized behavior of world populations, which will ultimately transform the way societies will act, turning the behavior of consumption, transport and economy in general.
‘BlackRock Inc. Chief Executive Officer Larry Fink predicted the economy will eventually recover from the coronavirus outbreak, though he said the crisis will reshape investor psychology, business practices and consumer habits.
“In my 44 years in finance, I have never experienced anything like this. The pandemic that swept through nations across the globe this year is causing people to re-evaluate,” Fink wrote in his annual letter to shareholders. ‘
We have witnessed historical spikes in numbers of various sectors. For example, 6.65 million filed for unemployment benefits, which shows an unemployment rate of 20%. Vice President Pence says this is temporary. However, in the face of the emergency, companies are struggling to manage themselves, and through this necessity, they generate learning that establishes new work standards that could be here to stay.
Global crisis present both a challenge and an opportunity. In the recession before World War II, by joining the Allies, the US found a way to turn the problem around and make the most of it. This type of historical events mark radical changes in the world. Today, as we have been told by Presidency, “we are at war”, which will erode some sectors but others will be favored.
In any case, it is time to be united in the face of challenge, punctually following what health authorities recommend. We must reflect as companies on how to act and, more importantly, define how the world will be configured and how economies will be structured.