According to the International Monetary Fund, the effect on the economic activity in the first half of 2020 was harsher than expected. As of June, this year’s global economic growth indexwas forecasted to go down to -4.9%, which is 1.9 percentage points below the April forecast. The US economic growth index in 2020 is expected to be at a -8% rate, with Europe at -10.2%. The worst growth rates are expected in France (-12.5%), Italy (-12.8%), and Spain (-12.8%).
Manufacturing, travel and transportation, retail, and energy & resources were affected the most, with their operations, supply chains, personnel, and revenue suffering from the tremendous impact of the pandemic.
All these industries have demonstrated the lockdown vulnerability scenario. And helping them out by providing discounts for services or loans might be a good strategy for banks and FinTech companies if they are capable of doing so. Remember that your support can become their stepping stone to get back to the pre-crisis operation volume. For instance, Genome, a Lithuanian FinTech company, has canceled monthly fees and is offering free business & merchant account openings for all low-risk companies so that educational platforms, food services, electronic goods, entertainment systems, etc., could have fewer worries during these uncertain times. |
