As COVID-19 continues to wreak havoc across the world, economists are trying to quantify the economic fallout from the pandemic. Some believe that it is high time to sum up the interim results. For this reason, experts have divided companies into two types: market leaders who have benefited from the crisis and losers in the economic race, which are not sure whether they will ever be able to recover to the pre-crisis levels.
According to analysts, there have not been such drastic changes in the global economy that occurred due to COVID-19 since World War II. Based on the statistics of the US Department of Commerce, experts managed to analyze the current situation in the market. In the first quarter of 2021, consumer spending rose significantly, e.g. on alcoholic beverages by 16%, while transport services decreased by 52%. What is more, the coronavirus pandemic has delivered a severe blow to the labor market.Yet, it is showing green shoots of recovery. Last month, the number of people employed by warehouses was 1 million more than before the pandemic, the US Department of Labor noted. The tourism sector suffered the most. The US Transportation Security Administration said that two-thirds of the number of travelers who went through checkpoints in May was recorded two years ago.
Some companies have benefited from lockdowns, while others have joined the ranks of losers. Among the biggest gainers turned out to be firms that sell homes. Currently, home sales in the United States have soared. At the same time, spending on leisure activities dwindled by 20%. Commercial airlines were the main victims of the pandemic. According to analysts, after the pandemic, this industry is unlikely to be as profitable as it has been before.
The revenue of streaming services has skyrocketed as well. For many consumers, watching movies at home will become a great alternative to going to the movies. However, such a situation will adversely affect the revenues of cinemas, experts emphasize.
During the pandemic, online stores have cemented their place in the market. They grabbed the lion's share of retail sales from traditional retail outlets. Food delivery companies such as DoorDash also experienced an upturn. However, experts are not sure that these firms will be in high demand after the pandemic. People will order food less often than they did at the height of the pandemic. Undoubtedly, it will significantly affect the income of food delivery companies.
However, the ability to adapt to the new reality will help many firms stay afloat. At the moment, market players refrain from making any investments. Besides, the future of many companies is uncertain. Analysts recommend that investors take a wait-and-see approach and see how events will develop.
