Almost all the country emerging from the pandemic, world toward recovery or not is something everyone is concerned about. World economy is under the almost once in the century incident, no country can escape from the economic depression that is coming, due to the connected world economy for the modern world.
No matter how each country attempts to do on their own, collectively it still depends on how the counterpart for the rest of the world dealing with the COVID-19 as in other part of the world continue to spread, where reporting of the infection figure and how it is measure remain doubt for the rest of the world.
GDP growth, goods export, incoming tourism are few interrelated variables. With COVID-19, lockdowns and consumer fear for the inflection had caused the airline, hotel, retail and restaurant, travel and tourism under accelerated falls.
As long as the world remains locked down here and there, the world consumer at large can not be back to the peak like the past, the world economy recovery is still a long way to go.
No matter how each domestic government intervenes, in the end of the days, it still depends on the consumer who to spend and let the spiral growth momentum to come back. If the confidence to spend and willing to do so is low, or take a long time to get back to the peak before COVID-19, then the road toward recovery for every country in the world is still a long way to go.
For business that remain maintain in the old fashion mentality, do business like the past, or assume it is another round of typical economic downturn, no matters how established you are in the past or couple of centuries, most likely you will replace with those who adapt and already in the digital transformation before COVID-19. Despite they are affect as well, but will not be at the extent like those who are business in the traditional way.
World toward recovery still has too many variables to be considered, as the US-China trade war, world factory shift out from China and benefit India, Vietnam etc, accelerated unemployment rate follow the private sector downsizing or shut down, it just begins, as we can from the news. In the new normal era, world spending is shifting toward focus on necessity instead of luxury, capital expenditures are held and most likely let go for operating expenditures that are necessary only. A lot of businesses need to adapt for the changing spending patterns, and offer more affordable products and services. If the business operation remains human intensive, it is time to consider gear toward digital transformation.
E-SPIN being actively involved in the digital transformation (DT), from assisting and supplying various point solutions to turnkey solutions that needed by the enterprise and government operation since 2005. Feel free to discuss with us for the change and transformation initiative, we see how we can collaboratively work together.