Covid-19 Executive Briefing
Understanding the economic impact of the Covid-19 pandemic and the implications for the travel sector
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- ECONOMIC IMPACT -
Latest update: 6 April 2020
Many economists have cut their GDP forecasts. The 2020 consensus forecast for GDP growth is currently negative and many predict a recession.
Unemployment rates are expected to rise in all major economies. The International Labour Organization estimates 25 million job losses worldwide.
2.4% - 1.5%
The OECD's forecast for global growth in 2020, with some consensus estimates being far lower
$2-3 trillion
Expected reduction in investments in the commodity-rich exporting nations, according to UNCTAD
Impact of Covid-19 on asset prices
- SECTOR IMPACT: AIR TRAVEL -
Latest update: 6 April 2020
The current level of disruption in the travel & tourism sector is unprecedented. Initially focusing on travel in and out of China, travel restrictions are now a global phenomenon.
Airlines reached a critical point in recent days:
- EasyJet announced that its entire fleet is now grounded
- Air Canada furloughed 16,500 staff
- British Airways has temporarily stopped all operations at Gatwick and furloughed over 30,000 staff
- American Airlines has asked for $12bn of government support funding
Airports are also suffering as passenger numbers plunge:
- Heathrow is closing one runway from 6 April
- Paris Orly has closed altogether and what little traffic remains has been re-routed to Charles de Gaulle Airport
