Business leaders are responding to the disruptions of the COVID-19 crisis by implementing significant and lasting changes to the way they do business. In this video, Stéphane Garelli – founder of the World Competitive Center – and Hans-Peter Siefen – co-founder and chair of the Nordic Business Forum – explore how the pandemic affects business models, infrastructure and ways of working. In their engaging and well-informed discussion, they outline what a postpandemic economy might look like and how businesses can prepare.
Recovering from the COVID-19 crisis will take time.
Many countries already experienced economic slowdowns before the COVID-19 crisis hit. But a country’s gross domestic product (GDP) drops to roughly 50% during lockdown. Experts estimate that returning to February-2020 status will take 18 months although recovery times will differ depending on the sectors. The real estate sector, for example, will probably rebound rapidly, in part due to low interest rates. The economy is unlikely to grow instantly, but instead will take a U shape, as job losses and government debt will exert long-lasting effects on economies. Banks so far appear to be weathering the crisis well.
The speed of economic recovery will also depend on whether people choose to spend or save. Although consumers may initially spend more money on things they’d put on hold during the pandemic, uncertainty and concerns about the future will likely result in more conservative spending after that.
To become less vulnerable to disruption, businesses are modifying their...
About the Speakers
Stéphane Garelli is the founder of the World Competitiveness Center, former managing director of the World Economic Forum and professor emeritus at both the International Institute for Management Development and the University of Lausanne. Hans-Peter Siefen is the co-founder and chair of the Nordic Business Forum and chair of the board of directors of the Nordic Business Forum.