In case you haven’t noticed yet, countries around the world started to ease their COVID-19 lockdowns claiming that they have managed to flatten the curve, and that there are no significant spikes in cases anymore. Whether that is the real reason or not, we’re all aware by now that the global economy has been ravaged by the novel virus, and it seems that it’s time for governments to roll up their sleeves and start resurrecting their respective economies.
With loosening the lockdown rules and allowing businesses to reopen gradually, one would wonder: does that mean it will be "business as usual" soon?
The short answer to this question would be: “This won’t happen anytime soon.” But if you’re intrigued enough to know the hows and whys, then keep reading.
Andy Williams once serenaded us with his Love Story and he didn't know where to begin. Well, in our current case there’s no love story to mention, but oh my, where do I begin indeed?
Let’s start with the travel and tourism industry that has been in the ICU for a while. The novel coronavirus has clipped the aviation sector’s wings, and paralyzed the flow of global tourism. Looking at the statistics and numbers released by WHO and CDC, and forecasts by the aviation’s giants; it’s devastating to admit that this industry won’t recover any time soon.
Moving to the oil industry that is still recovering from its recent suicidal free fall. This deteriorating industry relies heavily on the aviation sector. And since the latter won’t be in shape in the foreseeable future, the former’s full recuperation won't take place in the near future either.
The status of these vital industries will definitely reflect on the global stock markets. Hence, we’ll witness a cautious, modest improvement and maybe even consistent fluctuation in these markets.
When it comes to the retail industry, I’d like to believe that people weren’t just posting motivational quotes on Instagram, but they have actually learnt something from this pandemic and started differentiating between their needs and wants. If my gut instinct didn’t fail me this time, the retail industry will have to deal with new consumer behaviors that would harm its revenues not only for the short term, but for the long term as well.
So as I mentioned above, business won’t be back to normal anytime soon. But a person can only hope that our health and mental status would recover sooner than the business world.
The views/opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Al Bawaba Business or its affiliates.
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