A new study by the Bank for International Settlements offers a grim reminder of the significance of the COVID crisis for businesses.
The research describes in a formal way the length and depth of the COVID crisis impact we can expect on businesses:
It may take up to two years before we see the peak of businesses going bust. Even if until now we may not have seen that many bankruptcies it's because public policy and the build up of debt have supported businesses and delayed the inevitable in the short run.
Meanwhile the pressures continue to build up and businesses become increasingly financially vulnerable and may be forced to fold further down the road.
DISCLAIMER Cornerstone Economics provides news and articles as a service to our readers. This article is a professional and informative article and is by no means associated with political discussions. Cornerstone Economics reserves the right to make any changes in time.
Cornerstone Economics is a purpose-built research-based consultancy firm focused on solving management challenges from an entrepreneurial and business perspective. We apply our business, analytical and creative skills to bring about solutions to public, private and the social sector. With an entrepreneurial mind-set we provide commercial solutions to businesses, as well as social solutions to policy makers. We believe that to solve social challenges, we need to re-imagine the system and bring business and people together as one.
Comments