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The following is the Women, millennials and low skilled workers are the hardest hit From The impact of coronavirus on our wealth recommended by recordtrend.com. And this article belongs to the classification: global economy , Life data.
The new outbreak has plunged the world into recession, which is as serious as the global financial crisis in 2008. Surprisingly, family wealth remains stable. We’ve looked at what keeps family wealth intact, which groups are most affected, and whether our wealth creativity really remains intact.
2019 is a good year to create wealth. Global wealth has increased by $36.3 trillion, while the per capita wealth of adults has increased by 8.5% compared with 2018 – thus easing the impact of the new epidemic. Despite the stock market turmoil in the spring, household wealth is still slightly higher than it was at the beginning of the year, with the government’s massive contingency plan and low interest rates playing a part. However, there are differences among different regions and populations.
Why has family wealth not been significantly affected by the epidemic?
A number of factors contributed to this unexpected result
Consumption restriction: the closure of the city and restrictions on shopping, entertainment and travel have led to an unexpected increase in savings and a lower than expected increase in household debt.
Downward interest rates and relaxed credit conditions: the epidemic situation and the closure of cities have contributed to the trend of home office. This has activated the property market in a number of regions and boosted the demand for large property outside the city.
Governments provide financial support: governments around the world provide trillions of dollars to families through aid programs of different sizes. This frees many families from the dilemma of relying on savings or borrowing.
Unpaid leave and employment support scheme: the government provides salary subsidies to employers who are forced to suspend business temporarily or reduce their business scale, so that enterprises can avoid business suspension or continue to operate reluctantly, and extend the paid time of employees.
We need to look at these phenomena carefully: the support measures cover up the real burden of the new epidemic on family wealth. These measures will only delay the cost and cannot eliminate it, because the government will eventually seek to recover part of the cost. In addition, the relevant data of small enterprises (especially those most affected by the epidemic situation and related restrictions) are insufficient, leading to the distortion of the actual situation.
The impact of the epidemic on family wealth has been relatively mild so far
Which groups of people are most affected financially?
The impact of the epidemic on wealth is reflected in two aspects: the impact on personal wealth portfolio and the impact on income.
Individuals holding more shares, people in the late middle age, and the wealthy have suffered financial losses, especially investors in “old economy” industries such as physical retailing and airlines.
Female workers are disproportionately affected by their high concentration in restaurants, hotels, personal services and retail. As a result, more women than men were unemployed during the outbreak.
Millennials have experienced their second major economic shock as adults. Together, they have experienced unemployment and turbulence. Their prospects for wealth accumulation are bleak due to the weakening of economic activities, travel restrictions and the end of globalization.
Prospects for wealth creation after epidemic
The impact of the first wave on household wealth was relatively mild. The rapid response of the government and the central bank (drawing lessons from the 2008 financial crisis) undoubtedly played a key role.
While emergency resources have been stretched to the limit, the second wave of epidemic and the aggravation of recession may lead to different situations. In the long run, the growth of household wealth tends to be roughly equal to GDP growth. The decline in GDP, the rise in debt and the end of contingency plans are just a few factors that we expect to restrain wealth growth. Nevertheless, we expect growth to return in 2021, but the impact of the epidemic on our ability to create wealth will be long-lasting.
From: Credit Suisse read more: Global Wealth Report 2016: three key trends dominate, women and millennials rise S & P Global: coronavirus could cost Asia Pacific $211 billion International Labor Organization: 2019 coronavirus could cause nearly 25 million jobs worldwide Deloitte: 25% of millennials say they will try a new job in the coming year Welcome pastime IRI: tracking the behavior of American consumers during the outbreak of coronavirus Gartner: 81% of CFOs provide more benefits to hourly workers during the covid-19 outbreak Promoting inclusive growth 2017 women, career and happiness: Digital generations of women’s workplace influence report on how women build and promote their personal brand Tony ingay
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