The Economic Impact Of COVID-19, According To Business Leaders

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The Economic Impact of COVID-19, According to Global Business Leaders

The Economic Impact of COVID-19: Positives and Negatives

The global pandemic has disrupted business activities worldwide. But COVID-19’s economic impact has varied across regions, and the consequences have been largely dependent on a region’s economic position.

Using survey data from the World Economic Forum’s 20th Global Competitiveness Report, this graphic showcases the economic impact of COVID-19 worldwide. This year’s survey was conducted between February and July 2020 and includes responses from 11,866 business executives across 126 economies.

As you’ll see, the data was collected with the specific focus of contrasting the pandemic’s effects on developing economies compared to advanced economies.

Top Negative Impacts of COVID-19

By comparing business leaders’ responses in 2020 to their answers over the last three years, some clear trends have emerged.

In advanced economies, the top negative economic impact of COVID-19 has been a decline in competition, followed by a reduced collaboration between companies and a growing challenge in finding and hiring skilled workers:

Rank Factor % Change (2020 vs. 3-Yr Avg)
1 Competition in network services -2.9%
2 Collaboration between
companies
-2.6%
3 Competition
in professional services
-2.3%
4 Competition in retail services -1.8%
5 Ease of finding skilled employees -1.5%

What’s driving this reduced competition in advanced economies?

One factor could be the increased use of online platforms. Ecommerce is heavily dominated by a select number of retailers. Because of this, bigger retailers like Amazon have seen massive boosts in their online sales, while many smaller brick-and-mortar businesses have been struggling.

While negative impacts on advanced economies are centered around market concentration and talent gaps, developing countries have faced different problems this year, like increased crime and governance issues:

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Disclosure: None.

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