A severe slowdown in the markets across the globe, waves of bankruptcies, mass layoffs of workers - these are just a few of the economic crimes which we can blame the SARS-CoV-2 virus for. Despite plenty of its tragic effects – both socially and economically – the pandemic has created many opportunities that could improve the world we live in since it is a massive generator of changes.
Plenty of predictions about how quickly the economy will recover from the pandemic-based recession have been made. Due to different outlooks on the problem, those speculations tend to vary significantly. For example, the US Treasury Secretary Steven Mnuchin predicted that American economic growth would "really bounce back in July, August, and September," resulting from accumulated consumer demand. Meanwhile, Mark Zandi – chief economist of Moody's Analytics – is definitely less optimistic, stating that the economy will need years to recover completely.
But what exactly should come to our minds when we depict the vision of the post-pandemic economy?
Many experts started to talk about the new reality describing it with the term "Low Touch Economy." It refers to the way, in which businesses had to adjust their activity to succeed during the pandemic and shape the post-pandemic future.
One of the most frequently discussed areas connected with the topic of Low Touch Economy is the labor market. Due to the pandemic, many companies have decided to provide their employees with the possibility to work remotely. This adjustment has effectively optimized many businesses' economic activity, but it has also had a severe impact on the approach people have towards work. Many workers who have been forced to perform their professions remotely have been struggling with finding motivation or drawing a separating line between their work time and free time.
The expansion of teleworking and remote work, amongst numerous restrictions and the need for social distancing, have significantly impacted the office market. According to Delfi Partners' prognosis, many companies tend to rent smaller offices or opt for short rental contracts due to those changes. The main concern is whether those modifications are temporary or permanent, which leaves a specter of uncertainty hanging above the office market.
The sphere of entrepreneurship has also undergone some significant transformations – while some people started to think seriously about setting up their own companies due to massive layoffs, the idea of owning a small, local business became scarier than ever.
Specialists also suggest that the pandemic may be a catalyst for bolder changes in the international economic relations' structure. One of the main problems faced by global companies is the concentration of their production resources in Asia. Till the pandemic, there haven't been many clear impulses for specific changes in this matter. However, right now, many international companies have already started projects aiming to reshore their businesses.
Many requirements and restrictions have also created plenty of opportunities for the growth and development of the 4th industrial revolution. A variety of technologies became crucial in helping us to live a socially-distance life.
Numerous leading companies have turned to invest in highly automatized production methods to make sure they don't help the virus' spread. One of the examples of robotized business is Starship. This Estonian robot-delivery company has never been busier. "Our robots have gone from a convenience to a necessity for a lot of people, and that is a big mental shift," claimed Henry Harris-Burland, the vice president of Starship's marketing.
Another technology-backed sector experiencing excessive growth is e-commerce. Possibility to order products online with door-to-door delivery has captured the hearts of a substantial group of consumers. Even the e-grocery business has grown remarkably, gaining lots of new clients.
The wind of change has also hit the sphere of negotiations. As a result of travel restrictions and social distancing, most business meetings have been moved online. Despite the possibility of hearing the other person and seeing them on the screen, a lack of in-person presence during negotiations forces us to focus on different aspects of the interaction.
Body language tends to express a lot of information about our counterparty; meanwhile, we can often only see their face on the video chats. Even something as simple as the lack of a handshake can give some people a sense of uncertainty.
Significant changes lead to various opportunities; however, they also have the power to uncover substantial problems experienced by humanity. Pandemic did the same thing, highlighting and exacerbating economic inequality across the globe. Many children from low-income families have been affected by the lack of possibility to buy the necessary equipment to participate in online classes.
Also, the topic of the ongoing climate change has been omitted by many policymakers, focused on fighting the economic and social consequences of COVID-19. Unluckily, we don't have the luxury to stop worrying about it, as it proceeds, becoming more and more dangerous.
In the post-pandemic economy, we all should make efforts to create a space for change, especially within economic equality and fighting climate change. Why? Because we don't have to go back to what was "normal" before the virus hit the globe – we can create the "new normal" serving our long-term goals, both individually and collectively.
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