Every crisis has shaped behaviors in one way or another. The coronavirus chaos won’t be an exception. Allianz researchers throw five ideas into the ring:
Health system investments: After years of being on the backburner, health systems will be back in the spotlight as the virus emphasizes the need for stronger public healthcare systems.
China’s importance: The Asian giant was the first to be affected by the coronavirus. Ravaged by the virus, the country is not only rebooting but also offering support and expertise to other epicenters. The event reinforces China’s importance in the global economy.
Localization over globalization: Countries turned inwards when the virus spread and the sudden supply chain shock left many companies smarting. Businesses may be tempted to look closer home for their needs as they try to minimize the chances of such shocks in the future.
Dealing with other challenges: The crisis could change the way we fight other challenges such as climate change, another exponential, probabilistic and collective challenge ahead of us.
Investment patterns could change: Few would doubt that the outbreak will change how we work, how we shop and how we travel. What could also change, is how we invest...or not. That could even inspire the creation of new financial products.
For a more in-depth look into what can be expected from the global economy in the coming months, read the Covid-19: Quarantined Economics report from Allianz Research...