The global economy will be adversely affected by the COVID-19 pandemic with short-term global growth projections revised downward. When we do return to normal growth, the impact of the pandemic will have far-reaching effects on the way we do business
Publication looking trends and issues affecting the global economy
Insights and expert opinion to support organisations
COVID-19 is having significant impacts on all businesses. The IMF expects 170 economies will show negative GDP per capita growth this year. There will be a recovery in stages, but what shape that recovery curve takes is uncertain. We at PwC would expect to return to normal growth again when the pandemic has passed. The efficacy and availability of a COVID-19 vaccine will determine the pace of recovery, but the impact of the pandemic will have far-reaching effects on the way we do business in the future.
In the long term, China, India, Brazil and other emerging economies will become large consumer markets, not just low-cost production centres. The trade in services is still one area that looks promising. Natural resource constraints, such as those relating to energy use and climate change, will also boost demand for new, greener technologies.
For now, businesses will be re-evaluating the models of production that served them in the past as supply chains falter. Just-in-time manufacturing, for example, will have to adapt to a world fearful of global disruption from future pandemics and other threats.
Director, PwC United States