5 Things about COVID-19 that’s Worrying Business Leaders in the US
According to an article published on https://edition.cnn.com, a long-drawn-out global recession is the greatest worry for all business leaders, as they predict the fallout from the COVID-19 crisis. Then, other worries are troubling them too!
With the corona pandemic creating havoc on people and also businesses, the source of revenue of several entrepreneurs has been affected. Based on the findings of the Goldman Sachs survey, 50 percent of company owners think that they may not continue operations for more than 90 days with the corona pandemic taking a toll on businesses and also economies around the world. Here are five things about COVID-19 that’s making entrepreneurs spend sleepless nights:
1. Bankruptcies
COVID-19 could lead to bankruptcies, a high rate of job loss among youths, and also increased possibilities of cybersecurity threats. Due to remote working, based on the findings of the World Economic Forum (WEF), Zurich Insurance Group, and also Marsh & McLennan.
After surveying 350 senior professionals from giant corporations all over the globe. It was discovered that two-thirds of the participants listed a long-drawn-out worldwide recession. Which is the most bothersome risk, affecting many companies? Increased disparity, technology mishandling, and also waning of climatic commitments would lead to increased threats to the businesses.
2. Reduced economic activity
The business leaders are worried about reduced economic activity. Requiring trillions of dollars spending in response packages, causing structural swings in the world economy moving frontward. As businesses and also nations strategize for restoration and also revival. The COVID-19 crisis would lead to extensive bankruptcies and also industry consolidation.
3. Huge debt build-up
The impact of the corona crisis is detrimental leading to a huge debt build-up for companies, federal budget, and also corporate cash reserves for the years to come. The US and also global economies are facing an increased risk of immersing into a greater disaster, while companies may face negative spending, competition patterns, and also manufacturing.
According to the International Monetary Fund (IMF), the government debt in the developed nations will shoot up to 122 percent of Gross Domestic Product (GDP) in 2020 from 105 percent from last year.
A weak financial position is the worry of business leaders when it comes to major economies. It’s expected that current spending could result in a new age of tax hikes and also the severity.
4. Huge unemployment
The corona pandemic is here to stay and also have a long-lasting impact, as a huge loss of jobs will affect consumer purchasing power, customer confidence, well-being, and also equality. These challenges will have a toll on social defense systems, according to risk officials.
With more pressure on education and also jobs, more than 1.6 billion students could not attend school due to the epidemic. It means one more lost generation.
5. Labor market inequalities
The danger of remote work for highly-skilled workers would possibly lead to huge labor market inequalities and also a mounting premium for those workers having mobile skills. There is adequate proof to indicate that migrant workers and also low-income people would be affected severely due to the corona pandemic as well as lockdown measures.
These are the greatest worries of business leaders amid the corona crisis. The corporate sector and also governments need to take effective measures to revive the business. And also economy once the lockdown is lifted.