- ECONOMIC IMPACT -

Economists and institutions have cut their forecasts and experts are predicting the potential onset of recessionary environments.

Global companies are also concerned about the rising risk of Covid-19, with thousands of the world’s leading companies explicitly mentioning its impact on their business in their latest company filings.

-3%

IMF forecasts the global economy to contract by 3% in 2020 as the ‘Great Lockdown’ will cause a dramatic drop in economic activity.

6.7%

The International Labour Organization estimates 6.7% of worldwide working hours will disappear in Q2 2020.

Impact of Covid-19 on asset prices

- SECTOR IMPACT: MEDICAL -

As of 05 May 2020

disposable hospital supplies market impact

GlobalData expects the current spend for disposable hospital supplies to increase $8bn worldwide, substantially up from the current estimate of $16.4bn, based on worst-case scenario assumptions.

30,000  ->  18,000

2019

2025

The initial surge in demand for ventilators is now subsiding as UK and US reveal much less demand for ventilators during the first wave than anticipated. The UK reduced its demand from 30,000 additional machines to 18,000.

Employment market impact

22%

The number of available jobs for medical manufacturers fell 22% in the last month. 

Key mediCal market developments

Supply chain & demand disruption


The availabilty of face masks has been a high profile issue for fron line health care providers. In some areas, shortages of N95 masks have forced end users to use disinfectants in order to reuse masks.


According to GlobalData, in Q1 3M Health Care US volume share of N95 filter face masks increased to 71% but decreased to 61% of a market worth $22.1m, because competitors could increase prices.


It it not just PPE that is facing supply issues, Covid-19 tests are also in high demand. To address this issue, Qiagen will meet shortages of essential COVID-19 test reagents by quadrupling production of its RNA extraction kit by end of April, eventually aiming for a 13-fold increase by end of 2020.


Sector-specific stimulus programmes


To ensure that hospitals can continue to operate during the crisis, governments around the world are approving stimulus packages to support healthcare providers. An example of this can be seen in the US, where Congress recently approved a $100bn stimulus package to help US hospitals address the pandemic. 


However, experts believe that the majority of this money won’t go to lifesaving care or equipment, but to underwrite the astronomical administrative costs of negotiating a complicated network of private insurance providers and other bureaucratic functions.

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