Covid-19 is a dead-on reminder that pandemics are not mythical phenomenons but that they can happen. More often than not, we cannot prevent a pandemic from emerging, however, this current pandemic has taught us the value of preparedness to dampen the effects in society.
The pandemic came in as a health crisis not only to Canada but the world at large. It’s spread has left national economies and financial markets crippling to their knees. The impact of the coronavirus has had a profound and serious impact on the global economy and has sent policymakers looking for ways to respond. The government is constantly trying to enforce new lockdown measures in a bid to flatten the curve.
Below are some effects of the pandemic on global market analysis;
- THE COUNTRY WENT INTO RECESSION
The current pandemic is a global shock like no other. It has had economic consequences across the globe with its effects trickling down to the society level especially for those countries that had a heavy reliance on global trade, tourism and finance. This being said, Canada has faced major disruptions to both supply and demand of goods and services. This has consequently led to dramatic changes in how Canadians conduct businesses and how consumers behave.
- ONLINE SHOPPING ON THE RISE
The negative effects of the pandemic have trickled down to the household level. With a lot of Canadians spending a considerable time in their homes either due to lockdown or unemployment, there has been a shift in procurement processes. Nowadays, a lot of people have started to use the internet more to shop for different products, even those that were previously regarded as “live purchases.” Retailers are simplifying the purchase process for their consumers such as having centralised shopping. Top shops are spreading leaflets online to give the clients a first glimpse at what to buy. Marks flyer, among others, is a great resource point that allows Canadians to shop for everything they want all under one roof, that simplifies a lot the whole purchase process and allows people to visit a smaller number of areas, which is definitely a safer habit.
TRAVEL SEEMS LIKE A DISTANT DREAM
The travel industry was the first to get hit by the pandemic. Airlines are still fragile with flight cancellations and customers asking for refunds for trips and holidays that they had previously booked. The new variants of the virus have forced the government to introduce even tougher travel restrictions. There’s no doubt that the hotel industry has also witnessed a severe impact of the pandemic. The lockdown status isn’t helping this industry as millions are out of jobs and companies running bankrupt.
GLOBAL INVESTMENTS IN FLUX
The rapid spread of the pandemic has had dramatic effects on the financial sector. Social distancing, self-isolation and travel restrictions have to lead to a reduced workforce across the country. It created an unprecedented risk that caused huge losses to a lot of Canadians within several months. Lockdown around Canada slowed existing investment and the prospects of a deep recession have led companies and investors to reassess new projects. When it comes to manufacturing, there was an initial shortage of products from China which affected companies across the country.
INCREASE IN UNEMPLOYMENT LEVELS
Covid-19 has left many sick, out of work and barely surviving. The levels of unemployment have almost doubled compared to its pre-Covid level. Policymakers across the country race to implement fiscal and monetary measures to alleviate the financial burden to the citizens. Millions of Canadians have been put on government-supported job retention schemes and wage subsidy. Entrepreneurs are fighting tooth and nail, with revenues and profits strongly reduced for micro-enterprises.