The post-coronavirus situation might be completely different and there might be a “new world order” influencing companies and societies globally, in line with a modern report by Bank of America.
The bank has recognized 5 key developments – tech wars, geopolitics, greater governments, well being and new customers – with enablers worth $20 trillion (Dh73.4tn) market capitalisation that may affect the post-coronavirus world.
Covid-19’s affect will prolong “beyond the current lockdown peak”, mentioned BofA, including that not like different crises, it would “leave the legacy of massive data and knowledge creation tools” in varied sectors reminiscent of drugs, know-how and social fields.
“We expect this pandemic to accelerate many macro trends that would have taken five or more years to play out before … we identify sub-segments across our big five themes that are well placed to benefit in the post Covid-19 world, with the total market capitalisation of $20tn.”
Whereas world information usually doubles each two to 3 years, BofA assumed that Covid-19 might be a “major data accelerator, speeding up thematic disruption from decades away to only years away for certain themes”.
The Charlotte-headquartered monetary agency’s survey revealed that eight in ten respondents think about geopolitics as the important thing de-globalisation driver.
Whereas, over a 3rd of the respondents anticipate diversification in provide chains and 50 per cent anticipate climate-friendly investments to extend put up Covid-19.
The bank surveyed analysts from 3,000 firms spanning 25 sectors.
The virus outbreak, which has unfold the world over prior to now months, has accelerated structural shiﬅs in consumption, working and the usage of know-how, it discovered.
“The lasting legacy of this [Covid-19] will be a combination of new communication infrastructure, data generation, cloud computing power and bandwidth,” mentioned the report.
This might pull ahead commercialisation of moonshot applied sciences reminiscent of autonomous autos, quantum computing and vertical farming, as nations look to “get an edge in the race for tech supremacy and shiﬅing industrial and political priorities”.
Additionally, there might be a brand new social contract that may see greater governments that might be extra influential.
“Covid-19 has handed governments a new social mandate to protect their citizens … they will exert greater influence on businesses with shareholder supremacy potentially eroding in favour of stakeholders.”
A lady reads a poster displaying new hygiene and distancing guidelines on the seaside in France. EPA
Just like funding put up military-related and different crises, authorities spending on private security will stay elevated in contrast with pre-Covid ranges for years to return.
Tendencies like make money working from home, e-commerce and stay-at-home actions (reminiscent of streaming and e-sports) may see rising long-term adoption.
Nonetheless, there are a number of short-term challenges.
Financial uncertainty may constrain total demand and funding. Issues over social distancing may negatively have an effect on sharing economic system platforms, mentioned BofA, including that the elevated knowledge monitoring and private monitoring will increase privateness and moral considerations.
The report mentioned that Covid-19 expertise can even amplify the significance of healthcare and speed up different urgent world public well being points reminiscent of drug pricing, antibiotics resistance, future pandemics prevention and common vaccines for all.
Globally, roughly 10 per cent of the gross home product is spent on healthcare however 20 per cent to 40 per cent of that is wasted.
“A more efficient system that focuses on value-based outcomes, preventive care and greater use of technology such as big data, tele-health and wearables will be important in securing a healthier world population post-coronavirus,” famous BofA.
Up to date: Might 22, 2020 07:03 PM