The COVID-19 (Coronavirus) pandemic of 2020 took the world by storm and hit just about any country all over the world. Unfortunately, due to lockdowns and the inability for individuals to leave their homes, the pandemic brought in some severe challenges and setbacks for just about any business. It’s said that the inflow of external private finance will drop around $700 billion when compared to 2019. This even exceeds the 2008 crisis numbers with around 60%. On top of that, low income countries will have to spend around 15.4% more of their GDP and emerging economies around 4% of their GDP just to fill SDG spending gaps. Then there are issues like high debt levels which make these problems even more challenging.
Why is this happening?
Many businesses all over the world are closing due to the pandemic and the lack of customers. On top of that, the Dow Jones Industrial Average Index has some of the largest single day losses and gains. That means the stock market is very volatile right now, just like the financial market as a whole. Even the Nasdaq composite index and the S&P 500 Index are barely managing to stay afloat in a situation like this. The European markets are also dealing with a similar problem. In fact, the Financial Times Stock Exchange 100 index dealt with the largest one day fail that was encountered since 1987. Since people are locked inside their homes, many businesses are unable to sustain themselves. The focus for many customers is turning to the online world. However, that does mean a lot of brick and mortar companies are not able to continue working and they are closing down.
Getting support from the government
Many countries, including the US, are trying to help businesses as much as possible. The US has its own financial aid system for companies that can bring in upwards of $10000 per company to help with the current issues, sometimes even a bit more. Something similar is happening in Western and even Eastern Europe as well as China and South Korea. The challenges brought by this pandemic are felt all over the world. They might even be felt for months and years to come. Despite the fact that relief plans are designed to help companies, the finance world is still dealing with a lot of pressure. Investors are remaining very cautious and they are waiting to see how the outbreak is looking until they start investing again.
What can a company do at this time?
It’s hard to know how much time the COVID-19 (Coronavirus) pandemic will influence our lives. As a result, businesses need to re-adjust and adapt to the new normal. Investing money in safety protocols and relying on remote work or contingent workers is one thing. Expanding to the online world and generating sales that way can be a silver lining. It’s clear that this pandemic encourages businesses to adapt and find new ways to reach their customers in order to remain active!
#consultingremote #covid19 #coronavirus #pandemic #remotework #workfromhome #contractor #contracting #consulting #consultant #hireme #fortune500 #accounting #finance #budget #forecast