Changes inevitably created by Covid-19 are expected, but new rules will emerge in commercial relations, consumption habits and the weight of the State in relation to the market.“The pandemic is showing, once again, the dysfunction of the euro, which puts member countries in a macroeconomic straitjacket. Unless the European Union can muster the will to transform itself into a true fiscal and political union, the euro area will begin to separate, "
Predicts Paul Sheard, principal expert at the Mossavar-Rahmani Business and Government Center at Harvard University's Kennedy School.
With covid-19 came also one of the biggest enemies of economic activity, uncertainty!
According to the Economic Synthesis of the Economic Analysis Group of ISEG (University of Lisbon) the GDP variation in 2020 should have a fall between -8.0% and -4.0%
According to the ISEG study “The duration of the most restrictive phase necessary to contain and control the epidemic will be a determining factor in the greater or lesser depth of the economic crisis this year. For now, in terms of quarterly evolution, the quarter in which the greatest contraction of the product is expected is the 2nd quarter, after which a progressive recovery of the product is projected, quarter by quarter, but positive year-on-year growth is not very likely until the end of the year. end of year."
In the Summary of the Situation of ISEG, they also analyze the behavior of demand and supply in the Portuguese economy after Covid19, arguing that “In economic terms, the current crisis begins with supply restrictions that will change, very quickly, due to unemployment and falling income, in a demand crisis, which may be more or less profound and lasting, depending on the economic policy that will be implemented for that phase and the dynamics of recovery of the confidence of economic agents. ”
The economy will not be the only one affected by Covid-19, society itself will have to rethink its way of living and adjust to the new times. Fear and uncertainty will leave a big mark that will result in the search for new ways of interacting and suppressing the needs of society, consequently companies will have to adapt to be able to respond to the new forms of demand that will arise.