What industries will get negatively affected by COVID 19 and what will thrive?

Covid 19 is spreading across the world, paralyzing not only the healthcare system of many countries but the whole economy on a global scale.

Many experts predict a global economic crisis at the end of this healthcare crisis, and a large number of established industries are going to get affected.

According to a recent Pew Research Center report, nearly 93% of the world’s population now lives in a country where there are travel barriers across borders.

This makes travel, hospitality, and airline industries are going to be in the frontline of those industries which are going to get negatively affected by the coronavirus pandemic.

Next in line is the automotive industry. When national economies go into a crisis, governments are going to impose barriers in importing luxury vehicles. This will create a decline in demand for imports of automobiles from lower to middle-income countries.

Of course, when the automotive industry goes into trouble, the oil and energy industry will also suffer, making them another loser in this crisis.

For many decades, we lived in a culture of consumerism, where we manufactured products which are not necessarily essential for our life. Meaning, the non-essential luxury products will get at least a temporary hit, when people start to cut back on their expenses on luxuries as they will struggle to keep their income at the same levels as earlier.

Construction and real estate industry going to get hit as well due to two factors. There will be fewer investments in large-scale construction projects, and two the prices of raw materials will go up making it unaffordable for individuals to start new building and construction projects.

Now let’s see who is going to get away as the winners of this crisis.

Banking and finance will get a temporary hit, as investments going to go lower in the short run, but they will recover fast sooner the recovery phase of the recession starts.

When traditional banks struggle for a little while at the start of the recession, the Fintech companies and mobile payment providers will thrive in the short run. There will be a huge boom in peer to peer lending services through fintech solutions, skipping the traditional banking system.

Agriculture is going to be a winner of this crisis, especially the sustainable methods of farming. There will be a huge emphasis on small-scale organic farming, paving the way for increased demand for agricultural raw materials and equipment.

As sustainable agriculture grows in popularity, sustainable food processing and waste management will emerge as a new thriving industry. We will start looking critically about the food produce wastage across the world, and this will emerge as an industry of it’s own; not only as a support service for agriculture.

Medical supplies and services, personal care and healthcare are some of the other industries that are going to get benefited of this situation.

Finally, Information Communications Technology; or ICT and related services are going to be the biggest winner of this Covid 19 crisis.

As the business travel industry will suffer, teleconferencing and digital collaboration tools will thrive as the fastest growing industries.

eCommerce and support services will also get benefitted, as people will get used to buying stuff online, which they were forced to do while they were locked down at home.