A simple look at the stock market will tell you that coronavirus has led to a volatile economy, but there are numerous other factors at play. The initial outbreak of the coronavirus in China disrupted global supply chains. Even when the short-term effects end, the long-term economic impact will ripple for years.
More than 99% of all businesses are small businesses, and they employ about half the workforce. Most small businesses lack the cash reserves to weather a long interruption, and forecasts indicate millions workers will lose their jobs. There’s also the possibility of a “startup depression,” wherein new companies don’t enter the job market because of the pandemic.
Countries, corporations and individuals must adjust to the pending new normal.
Countries need to engage with other powers, even those they have severe disagreements with. Otherwise, the global problems will be unresolved and global society will suffer. The Covid-19 pandemic shows that the global system falls flat on its face when confronted with a global problem.
Corporations need to deal with the new realities for resilience in the interconnected economy, and what growth means in an increasing digitalised world.