COVID-19 Updates – Post Pandemic Effects on World Economy
The Coronavirus or COVID-19 pandemic has been a massive reordering point for the world as a whole. Just like other disasters such as the Fall of the Berlin Wall, the Great Depression, and the financial crisis in the world in 2008, even the COVID-19 will materialize several economic and social changes that would otherwise not have happened. So, to understand more of this you need to constantly keep an eye on the latest COVID-19 updates.
We all are worried, but since there is light at the end of every tunnel, we will also come back stronger. Along with that, we will also recover from any economic problems that have occurred due to this pandemic. However, it is also important that we have an idea about the fact that the economy is not going to be the same anymore after all the chaos is over. It is a transformational phase for the World Economy, and so then we must keep a track of the COVID-19 updates to get an idea of how things will be after this.
Economic effects post COVID-19
Check out the following for the details.
E-commerce and digital services will earn lasting and instant profits
We are in a situation where going out for our day-to-day needs is not possible. So, we are almost completely dependent on e-commerce services that can cater to our needs. They are the ones who can bring customers all the necessary goods and services with minimal physical contact.
The cloud computing-related organizations are no doubt the hands-down winners from this category. Yes, we are talking about teams such as Web Services of Amazon, and other services that make remote working simpler. For example, Zoom, Microsoft, and Slack are a few remote work facility providers. Besides we have companies like Oculus that deal with virtual reality. Last but not least, let’s not forget about the streaming services that take care of our entertainment needs. The best ones are of course Netflix, YouTube, Amazon Prime Videos, Hulu, and more.
Putting it down in simpler terms, platforms dealing in e-commerce, logistics, and food delivery are winning the game already. When there will be an improvement in the entire economic scenario, the credit for all these profits will go to the changes that you can see in the buying habits of everyone.
Remote working will become the new default
Those of you who are experiencing a sudden change of environment because now you are having to work from home will agree with this. You are getting spared of the commute and suit along with getting the facility of flexibility in work hours. Besides, you are learning how to achieve your work targets and also balancing other demands at home.
Most of you will prefer working remotely even after the pandemic gets over, and organizations would surely want to keep it like that. The organizations will benefit too from this type of arrangement. The main advantage will surely be the fact that productive hours will increase due to the lack of in-person meetings. However, it will surely be a loss on the side of commercial real estate firms in this scenario. The reason is simple because cutting down on workspace means there will be less demand for commercial properties at the end of the day.
Cut down to another scenario where there will be several restrictions imposed on traveling to foreign countries. In this scenario, businesses that are highly dependent on business travel will face a massive loss. There will also be a considerable exodus of workers of the white-collar category who are now living in the bigger cities. If the remote work arrangement settles down smoothly, people can cut back on their residential expenses and move back to cheaper locations too. As a result, the properties in metropolitans will face a decrease in demand due to a lack of tenants and purchasers.
Possibility of massive job automation
Several small and large organizations will have to compensate for losses by taking tough decisions. So, according to COVID-19 updates, it can be speculated that several people will be laid off depending on their previous performances. In this context, it becomes very clear that robotics and automation will replace all these manual work. As a result, organizations will be able to achieve their cost-cutting targets too.
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The people who will remain indispensable for the company will have to become remote-capable after this. If you can sustain this entire transformation, then you will surely emerge out stronger. All this will happen because the organizations will not have as many incentives as required to maintain their pre-pandemic headcount. Also, if someone gets laid off due to this scenario, it will be difficult for him to adjust to another organization with no skill set to match up with the post-crisis economic scenario.
The condition of the labor force will also become worse. Eventually, companies will realize the remote-capable functions can also be performed by other people at cheaper costs. So, the jobs will shift from the hands of in-persons to the remote-domestic workers, and then finally to remote-overseas organizations.
Rigidity in transits across regional and national borders
According to COVID-19 updates, almost all regional, national, and international borders are sealed completely. People have not been able to move from one place to another for the past several weeks now. It will probably be the same even after the borders will be opened up. It means that there will still be restrictions and the direct effects will fall on the overseas trade relations. Since foreign transit will be partially restricted, every government will want to sell self-manufactured items. Therefore, there will be a lack of demand for export and import goods too.
COVID-19 updates – in a nutshell
There will surely be a globalization retreat initially. However, after some time people will realize the existence of viral and technological threats. As a result, the requirement of international cooperation will also become clearer. Later, there will be a more pragmatic sense in the process of internationalism, and the reporting systems will become stronger too.