Covid-19: The Recession has Damaged...
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Upload update:2020-04-15
Consumer spending plummets and real GDP is expected to fall by 10% - 15% in 2020
The new analysis of strategy analytics shows that the 2020 recession triggered by covid-19 will destroy the global automotive, consumer electronics, semiconductor and it infrastructure businesses before the recovery in 2021.
The new data shows that the damage caused by the worst economic cycle since the great depression will cause the real GDP of major industrial economies to plummet by more than 7% (33% a year) in the second quarter, and consumers and B2B enterprises will suffer.
Harvey Cohen, President of strategy analytics and chief analyst of the scenario analysis, said, "our entire supply chain of digital products related to home, car and mobile lifestyle will suffer significant damage in this economic downturn, which is likely to gradually appear on a global scale in the next three to four quarters. Real GDP is expected to decline by 3% in the third quarter (12% a year) and will not grow until the second quarter of 2021. "
Ian riches, vice president of automotive business at strategy analytics, said: "since March, global car sales and the consequent demand for automotive electronics have plummeted, with a potential decline of 25% in 2020 compared with 2019."
David Kerr, senior vice president of wireless and broadband research services at strategy analytics, said: "global smartphone sales will fall by 23% in 2020 and then recover moderately in 2021. Due to service delays in Europe and reduced consumer demand for expensive new 5g devices in North America and China, this will have a huge impact on 5g adoption. China's supply chain has recovered, but consumers' willingness to update 5g devices and services is uncertain. A relative bright spot is network service. Home isolation is increasing the demand for broadband, although it has little impact on operators' revenue in the short term. "
