The spread of COVID-19 has resulted in an economic downturn that may last for several months. While the specific impact of a potential recession won’t be known for months or years to come, some general predictions can be made based on what we already know about the coronavirus. Let’s take a closer look at which industries may be the hardest hit, which will likely come through unscathed and which may struggle to survive.
The Travel Industry Could Look Very Different
Executives representing a number of airline companies say that they may not be able to survive without a government bailout. In addition, cruise lines and other companies in the travel industry are also going to be significantly impacted by the upcoming recession. This is because travel has literally come to a halt in many large cities and countries throughout the world.
Retailers Could See an Uptick In 2020
If you have been watching the news recently, you know that toilet paper is one of the most popular items in the United States and throughout the world. Regardless of how much money people have, they will still need to buy food, cleaning supplies and other essential items to survive.
Amazon has recently announced plans to hire 100,000 workers while Walmart has planned to hire 150,000 new workers. These individuals will be asked to clean stores, work in warehouses and deliver goods to people who opt to have items sent directly to their homes. Local grocery stores will also likely survive the recession as they mostly carry items that people need.
Government Spending Should Increase
The president has invoked the Defense Production Act, which allows the federal government to tell companies what they should be making. While businesses aren’t necessarily mandated to meet production targets set by federal agencies, the government can provide incentives to do so.
In the near future, medical supplies such as masks and ventilators are going to be in high demand. Therefore, companies that make those products will likely see an uptick in their revenues. The same is likely to occur for organizations that are searching for a vaccine that will prevent the spread of COVID-19.
The Self-Employed May Be Alright
Self-employed individuals are used to working at home, and they are also used to getting creative when it comes to finding work. Therefore, they may stand a greater chance of finding work or to take actions that will help them get through the upcoming crisis. There is also a chance that the recession will provide opportunities for entrepreneurs to create new products or offer services that will be in higher demand as the recession unfolds.
The upcoming recession will likely result in significant job losses and corporate bankruptcies. It may also change how the government approaches issues such as providing a universal basic income and paid leave. However, it is important to note that regardless of how bad recessions get, they will not last forever. Therefore, it is important for everyone to take steps to help them get ready for the next bull market.