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Tag: coronavirus crisis

  • 73% of business leaders say business has been affected by the pandemic

    73% of business leaders say business has been affected by the pandemic

    Almost three quarters (73%) of the business leaders who responded to a survey said that their business had been affected by the health crisis.

    Bbut that the effect had not been quite as severe as they anticipated in March 2020. At that time, 99% of companies expected a negative impact, according to PwC.

    For 20% of global organisations, the crisis has had a positive impact, with their business being in a better place today than it was before the start of the pandemic.

    The effect of the health crisis has varied between countries and industries, but few will emerge unscathed from this period.

    The most affected sectors have been leisure, entertainment and higher education.

    The manufacturing and automotive industries, public and government services, financial services and the energy, utilities and resources sectors also reported negative effects.

    Technology and health companies have fared much better.

    Only 35% of the respondents reported having a crisis response plan that was ”very relevant”, thus indicating that the majority of organisations did not have specific plans in place for a pandemic situation.

    Thus, currently, 95% of business leaders report that their crisis management capabilities need to be improved, with 70% planning to increase their investment in building resilience.

    Over 80% of the business leaders across all sectors and territories agreed that their response to the crisis took into consideration the physical and emotional needs of their employees.

  • 40% of working women are employed in sectors affected by the pandemic

    40% of working women are employed in sectors affected by the pandemic

    COVID-19 has increased labour market inequalities between women and men, with more women losing or giving up their jobs during the pandemic, according to the PwC Women in Work Index report.

    Progress for women in work could be back at 2017 levels by the end of 2021, with the index estimated to fall 2.1 points between 2019 and 2021.

    The Index will not begin to improve again until 2022, when it should recover by 0.8 points.

    Women were the most affected in 17 out of the 24 OECD countries that reported an overall increase in unemployment in 2020.

    Between 2019 and 2020, the annual OECD unemployment rate increased by 1.7 percentage points for women (from 5.7% in 2019 to 7.4% in 2020)

    Data collected for the PwC report show that globally, 40% of working women (nearly 510 million) are employed in sectors that the International Labour Organisation identifies as being hardest hit by COVID-19, compared to 37% of men working in these sectors.

    The sectors concerned include tourism, entertainment and recreation, trade and food services.

    In order to undo the damage to women in work caused by COVID-19 by 2030, progress towards gender equality needs to be twice as fast as its historical rate.

    Women in Work Index 2021

    As they do every year, PwC experts have prepared a list of OECD countries ranked by the progress of individual labour markets for women.

    The top places in the current edition are held by Iceland, Sweden and New Zealand, with Mexico, South Korea and Chile taking the last three places. 

    Among the countries of Central and Eastern Europe, Slovenia ranks highest (in 4th). Poland was ranked 11th, Hungary 18th and Estonia in 19th.

    The Czech Republic and Slovakia are only in the lowest third of the list, ranking 22nd and 26th respectively.

  • New state of emergency in The Czech Republic

    New state of emergency in The Czech Republic

    The Czech government has called a new state of emergency. This time for another 30 days, until March 28.

    The lower house of Parliament refused to extend the current state of emergency but did pass a new pandemic law that allowed the government to impose new tougher restrictions.

    The state of emergency has been valid in Czechia since October 5 2020.

    Under the new state of emergency there will be new strict restrictions limiting people’s movement and tightening shop and school closures.

    Czechia has the highest per capita infection rate in the world over the past week.

  • Czech coffee chain CrossCafe closed all locations in Prague

    Czech coffee chain CrossCafe closed all locations in Prague

    Czech coffee chain CrossCafe announced that it closed all five locations in Prague, as a result of the Government measures related to the coronavirus pandemic.

    ”For almost a year these measures limited the normal functioning of the entire HORECA sector, including CrossCafe cafes”, says the company statement.

    CrossCafe say that the support of the Government of the Czech Republic is far from covering costs.

    CrossCafe Atrium, Kateřinská, Strossmayer Square, Anděl, Komunardu are the closed locations.

    Prague is currently most affected by the outflow of tourists, the absence of office workers, as well as students.

  • PwC: The global economy is projected to rebound by early 2022

    PwC: The global economy is projected to rebound by early 2022

    The global economy is projected to grow in 2021 by around 5%, the fastest rate recorded in the 21st century, returning the global economy in aggregate to pre-pandemic levels of output by the end of 2021 or early 2022, according to PwC Global Economic Watch 2021.

    While the global economy is likely to be back to its pre-crisis levels, the rebound will be uneven across different countries, sectors and income levels.

    Growth will be contingent on a successful and speedy deployment of vaccines and continued accommodative fiscal, monetary and financial conditions in each country.

    Growth will return but be uneven

    According to PwC, the Chinese economy is already bigger than its pre-pandemic size, but other advanced economies, particularly heavily service based economies like the UK, France and Spain or those focused on exporting capital goods, such as Germany and Japan, are unlikely to recover to their pre-crisis levels by the end of 2021.

    The predictions caution that the next three-to-six months will continue to be challenging, particularly for the Northern Hemisphere countries going through the winter months as they could be forced to further localised or full economy-wide lockdowns, as recently displayed in the UK and Germany.

    So, these economies could contract in Q1 and growth overall is more likely to pick up in the second half of the year, when it is expected that at least two thirds of their population will be vaccinated.

    In economies such as the UK, France, Spain and Germany, growing but lower levels of output are projected to push up unemployment rates, with most of the jobs affected likely to be those at the bottom end of the earnings distribution, thus exacerbating income inequalities.

    More investments in green infrastructure

    The environment will be an important focus for 2021, significant investment and policy shifts related to the Paris Climate Agreement being expected in the major trading blocks including the US, China and the EU.

    In this context, global green bond issuance is expected to top USD 500 billion for the first time with investor appetite expected to continue to increase in Environmental, Social and Governance (ESG) funds.

    ESG funds will continue to increase and could account for up to 57% of total European mutual funds by 2025. Green bonds, which are used to directly finance environmental projects, currently make up less than 5% of the global fixed income market.

    Other forecasts for 2021

    In the previous edition of the Global Economic Watch, the Netherlands was credited with the best chance of winning the Euro 2020 championship, which due to the pandemic was postponed to 2021.

    Meanwhile, the form of the Dutch team has decreased and France now has the best chance to win.

    Annual average oil price to remain below USD60 per barrel but likely to pick in the second half of the year.

    Italy is expected to re-join the USD 2 trillion GDP club as public debt levels in G7 are projected to exceed USD 57 trillion.

  • Lockdown in Greece, extended until January 10

    Lockdown in Greece, extended until January 10

    The Greek government announced on Saturday a new extension, until January 10, of the restrictive measures imposed in the country for two months due to the COVID-19 pandemic.

    This ends the flexibility during the end-of-year holidays, AFP reports.

    Originally scheduled to end on January 7, ”restrictive measures will start on Sunday and last until January 10 for preventive reasons”.

    People are only allowed to go to the doctor, to the pharmacy, for jogging and exercise. Only grocery stores and drug stores are open and employees are advised to opt for remote work.

    Wearing a mask is mandatory both inside the buildings and outside and traffic is prohibited between 22:00 and 05:00.

    A strict lockdown, with traffic restrictions during the night to limit the spread of the second wave of the epidemic in the country – much more virulent than the spring – was adopted on November 7, being extended for the first time in early December for another month.

    Greece registered 4,881 deaths due to COVID-19 and 139,447 cases of contamination at a population of 10.7 million.

    More than 4,000 deaths have been reported in the last two months.

  • More than 70,000 businesses have closed due to the pandemic in Italy

    More than 70,000 businesses have closed due to the pandemic in Italy

    Almost 73,000 businesses in Italy were closed due to coronavirus pandemic, revealed a study by National Statistics Agency, DPA reports.

    This figure represents about 7% of the total of 1 million businesses included in the study conducted in late October and early November.

    About 55,000 businesses would resume operations in the future, while 17,500, of which 5,000 in the restaurant business, were permanently shut down.

    Another 700,000 continued to operate normally and 244,000 partially.

    The Istat study also found that 85% of closed businesses were small businesses with less than nine employees, usually sports centers, small hotels, shops and bookmakers.

  • Poland: New measures to support the economy amount to USD 10 billion

    Poland: New measures to support the economy amount to USD 10 billion

    Poland is set to start a program worth about 9-10 billion dollars, meant to help the economy cope with the effects of the second wave of the coronavirus pandemic (Covid-19), Reuters reports.

    The largest economy in CEE has weathered the first wave of the pandemic, but after a strong recovery in the summer it looks set to enter a recession in the fourth quarter, due to the effects of restrictions to stop the increase in confirmed cases of Covid-19.

    The new program will be worth 35-40 billion zlotys ($ 9.33-10.67 billion), of which three billion zlotys for micro-enterprises, five billion zlotys for small businesses and the remaining 24-27 billion zlotys for medium and large companies.

    During the first wave of the pandemic, the Warsaw government and the Central Bank of Poland adopted programs to support the economy, loan guarantees and liquidity measures worth more than 300 billion zlotys.

  • Coronavirus could kill Milan’s fashion sector

    Coronavirus could kill Milan’s fashion sector

    The fashion sector, one of Milan’s leading industries, is in crisis. The alarm was raised by Federmoda which calculated how 12 thousand stores in Lombardy suffered a drastic drop in sales of more than 50%, Milano Today reports.

    The association foresees a total loss of over 3.7 billion euros in Milan fashion retail alone at the end of the year, with the definitive closure of 350-400 stores out of over 2.500 in the city.

    The Italian city of Milan is recognised internationally as one of the world’s most important fashion capitals, along with Paris, New York and London.

    In 2019, via Montenapoleone in Milan ranked as the most expensive retail location in Italy. The average yearly rent in the Milanese luxury shopping street was as high as 13.7 thousand euros per square meter.

  • UK businesses borrow £52.6bn to survive the COVID-19 crisis

    UK businesses borrow £52.6bn to survive the COVID-19 crisis

    The devastating COVID-19 crisis caused a massive financial hit to businesses in the United Kingdom, confronting them with substantial revenue and cash flow losses.

    Many of them were forced to ask for support through the government-backed loan schemes to survive in the times of unprecedented economic disruption.

    According to data presented by BuyShares.co.uk, the cumulative value of loans that have been approved through the Coronavirus Businesses Interruption Loans Scheme (CBILS), Bounce Back Loan Scheme (BBLS), and Coronavirus Large Business Interruption Loan Scheme (CLBILs) in the United Kingdom hit £52.6bn in August.

    More than 1.2 million loans approved in four months

    The United Kingdom’s Government created a range of measures to help support businesses of all sizes throughout the coronavirus crisis.

    The smaller companies can apply for the Coronavirus Business Interruption Loan Scheme (CBILS), which operates through the British Business Bank via more than 40 accredited lenders.

    These lenders can provide up to £5 million worth financial help in the form of term loans, overdrafts, and asset finance.

    The Coronavirus Large Business Interruption Loan Scheme (CLBILS) facilitates access to finance for medium-sized and larger businesses with a group turnover of more than £45 million. This scheme can provide up to £200 million worth financial help for the companies affected by the coronavirus outbreak.

    The Bounce Back Loan Scheme (BBLS) allows lenders to provide a six-year term loan from £2,000 to 25% of a business’ turnover.

    In the second week of May, the combined value of facilities approved through these three schemes amounted to £14.8bn, revealed the HM Treasury data. By the middle of June, this figure surged by 157% to £38.2bn worth of loans.

    Statistics indicate the total value of facilities approved through the Government-backed loan schemes hit £46.2bn by the end of the second week of July. By August 16th, this figure jumped by 14%, reaching a total of $52.6bn.

    Statistics indicate the banking and finance industry has supported more than 1.2 million UK businesses with lending schemes to help them through the COVID-19 crisis.

    £35.5bn worth of loans approved through the Bounce Back Loan Scheme

    The Bounce Back Loan Scheme represents the most significant part of the government-backed aid package in the United Kingdom, with £35.5bn worth of loans approved by August.

    This scheme has been a success in providing more than 1.1 million firms with vital government-backed loans at an affordable rate with no interest or repayments due in the first year.

    The HM Treasury data revealed the cumulative value of lending through the Coronavirus Business Interruption Loan Scheme reached almost £13.7bn in August or 25% of all approved loans.

    Statistics indicate that between May 10th and August 16th, 516 medium-sized and larger businesses in the United Kingdom received £3.5bn worth financial help thought the Coronavirus Large Business Interruption Loan Scheme.

  • The coronavirus pandemic will put pressure on the revenues of regional and local governments

    The coronavirus pandemic will put pressure on the revenues of regional and local governments

    Moody’s Public Sector Europe said in a report that the coronavirus pandemic will put pressure on the revenues of regional and local governments in the Czech Republic, Poland, Hungary, Russia and Turkey in 2020, leading to higher deficits and debt burdens.

    The economic contraction caused by the coronavirus shock will translate into falling shared taxes and own-source revenues for RLGs in these five countries.

    Their combined funding needs will exceed €25 billion in 2020, up from €21 billion in 2019, before returning to pre-crisis levels in 2021.

    Regional and local governments in Turkey and Poland are the most vulnerable to a prolonged crisis due to high debt exposure and modest operating performance, respectively.

    Regional and local governments’ debt burdens will increase in all five countries before stabilising in 2021 as revenues pick up, except Turkey.

    Turkey, Poland and Hungary will record the highest debt burden increase in 2020.

    “Regional and local governments in the Czech Republic, Poland, Hungary, Russia and Turkey will be hit hard by the coronavirus shock in 2020,” said Vladlen Kuznetsov, a Moody’s Vice President – Senior Analyst and co-author of the report. “However, they will be able to weather the shock, given their mix of good fiscal flexibility, low debt burdens, and low refinancing risks.”

  • G20 fiscal packages to fight the coronavirus crisis exceeds $4,68 trillion

    G20 fiscal packages to fight the coronavirus crisis exceeds $4,68 trillion

    Data gathered by Buyshares.co.uk indicates that the cumulative fiscal package to the Coronavirus pandemic by G20 member countries is $ 4.68 trillion.

    The fiscal package is not final because the COVID-19 pandemic is yet to be contained fully.

    Japan has the highest fiscal package

    Japan has the highest fiscal response to the pandemic at $996.45 billion which is 19.5% of the country’s $5.110 trillion GDP. The United States package stands at $562.1 billion, representing 11% of the $21.2 trillion GDP. Australia with a GDP of $1.45 trillion has a fiscal response of $495.67 billion.

    Canada’s fiscal response is $429.24 billion, representing 8.4% of the country’s $2.8 trillion GDP. Brazil is fifth with a fiscal response package of $332.15 billion or 6.5% of the country’s GDP of $2.02 trillion.

    Other G20 countries with notable responses to the current pandemic include Poland ($316.82 billion), Germany ($250.39 billion), France ($204.4 billion), China ($194.18 billion), and Saudi Arabia ($163.52 billion) and the United Kingdom ($153.3 billion). South Africa has the least fiscal response of $5.11 billion which is only 0.1% of the $350 billion GDP.

    Buyshares.co.uk’s research also overviewed the size of fiscal packages announced by G20 countries in response to the financial and COVID-19 crisis in 2009 and 2020. Japan’s fiscal response to the financial crisis was 2.2% of the GDP compared to the Coronavirus crisis which is 19.5% of the GDP.

    The United States’ fiscal package to the financial crisis and COVID-19 was 11% and 5.9% of the GDP respectively. Australia’s response to the current pandemic is 9.7%  of the GDP while for the financial crisis the rate stood at 1.8%.

    Elsewhere, Canada’s response to the pandemic represented 8.4% of the GDP while in 2009, such a fiscal response was 2.8% of the GDP. For Brazil, the fiscal package released to mitigate the financial crisis in 2009 represented 0.5% of the GDP compared while theCovid -19 management package represents 6.5% of the GDP.