Only 36% of Americans expect an economic rebound this summer, as per McKinsey & Company.
This article forecasts the “new normal” and what’s likely to happen in the post-pandemic world. Consumer spending post-quarantine is expected to be conservative. If savings rates increase, consumption could be cut by $500 billion by the end of 2021, as per Glenmede analysts.
Companies could seriously consider diversifying supply chains out of China and strengthening online services for production agility and flexibility. Bill DeMartino, Risk Methods, says supply chains are starting to evaluate “cost of the risk in being so vested in China.”
The new normal could further entail legal risks for small businesses, as they are more vulnerable during outbreaks. Also, small businesses could face staffing difficulties, given the lack of resources and distrust by labour markets.
[5 minute read]