The economy was never going to be the same again with the outbreak of the coronavirus. We can all agree that the pandemic has had severe effects on the international economy.
It has negatively affected the stock market and service industries like the travel and hospitality sectors. With all the travel restrictions and lockdowns in most countries, it was ever going to be business as usual. Even some of the most reputable firms have had to lay off workers to cut down costs. Several professional soccer teams had to convince their players to take a pay cut.
If the coronavirus wasn’t enough, the 2020 elections came up to remind us that we aren’t yet done with the year 2020. While the implications of the 2020 elections won’t be as severe compared to coronavirus, the effects are still likely to be felt by various industries. For a long time, a presidential election has always signaled a change period that usually affects many economic areas.
The fact that we are amid a global pandemic further complicates matters. Investors aren’t even sure of what step to take next. However, despite the uncertainty sweeping across different sectors, individual commercial businesses won’t be affected by the current adverse economic impacts.
This article will further explain how the industries will stand to gain from the pandemic and upcoming elections.
It may be too early to make investment decisions based on the election’s outcome at this time. However, several areas of the economy are still essential to keep tabs on during this period. Let’s look at them.
One of the critical measures to curb the spread of the coronavirus was the social distancing rule. It means that mass gathering isn’t encouraged, and people are always urged to avoid public areas.
The result of restrictions on public movement meant that several physical stores would shut down. The biggest beneficiary has been the online retail stores which can do door to door deliveries.
The goal is to minimize social contact. As a result, these e-commerce sectors can make deliveries, gain popularity, and enjoy increased consumer demand. The future looks even brighter, given that people realize it is easier to make purchases without visiting the retail shops.
It is the new norm, and the customer base is likely to go up. A look at today’s analyst ratings further explains the massive impact of these e-commerce industries. For instance, Amazon is among the leading companies in the stock exchange market.
2. Health Care
Let’s face it. The health care industry has been busier than even before the pandemic. With surging numbers of corona patients, the health sector was overwhelmed at some point. However, the nation could head down two paths with the upcoming elections, depending on the results.
There is going to be a delicate balance between the Affordable Care Act and Medicare. While the two frontrunners have different opinions regarding the healthcare system, at least they have some consensus.
The candidates have publicly come out to question the cost of drugs and openly shown willingness to address the situation. But more importantly, the pharmaceuticals have been more engaged than before. They are trying to develop a vaccine for the virus, further laying bare the need to invest in research and development massively.
So, whatever the outcome of the elections, the challenges faced by the health sector, pharmaceuticals will be an area to watch.
3. Consumer Goods
Do you remember when the World Health Organization announced the first instance of coronavirus? Well, if you don’t, then we are here to remind you that many people rushed to make panic buying. The anticipated lockdowns pushed people into buying extra goods. As a result, grocery stores worldwide have experienced shortages, with hundreds of people flocking to stock up on items such as fruits and vegetables.
The trend doesn’t look like it’s changing anytime soon. With so many uncertainties surrounding the elections and the recurring virus, people will still purchase these consumer goods in large quantities.
4. Entertainment and Social Media Platforms
The government and health body have emphasized as much on the need to keep social distancing. As a result, most people have had to stay at home. The need to have to stay at home has led to an increase in virtual entertainments.
Companies such as Netflix have come up with appealing packages to keep people entertained while at home. And with different apps providing convenient platforms for entertainment, the trend will be with us for longer.