Sunday, July 6, 2025
  • Login
CEO North America
  • Home
  • News
    • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • CEO Interviews
  • Opinion
  • Technology
  • Environment
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel
No Result
View All Result
  • Home
  • News
    • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • CEO Interviews
  • Opinion
  • Technology
  • Environment
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel
No Result
View All Result
CEO North America
No Result
View All Result

CEO North America > Opinion > Global Economic Outlook: A Tale of Two Economies

Global Economic Outlook: A Tale of Two Economies

in Opinion, PrimeZone
- Global Economic Outlook: A Tale of Two Economies
Share on LinkedinShare on WhatsApp

The pandemic will dictate the contour of GDP for 2021, says KPMG.

As has been the case since the outset of the pandemic, the virus is dictating the economic outcomes. The faster governments can overcome the virus, the less economic scarring and the faster a full recovery can commence.

The economic and social response to the pandemic has not been uniform. Likewise, the geographic, industry, and household impact has not been uniform. This has led economists to call the recovery “K” shaped denoting the upper and lower legs of the K as it reflects the relative performance of various geographies, industries, and households.

Fiscal relief packages have been enacted in most countries and have been targeted towards those industries and households most impacted. Because the pandemic destroyed the supply of goods and services due to lockdowns and decimated demand due to reduced propensity and capacity to consume, it is believed that relief efforts to date, though large, are unlikely to ignite runaway inflation.

Monetary policy is also highly accommodative and can be withdrawn gradually as the recovery progresses should inflation worries be justified by highly elevated consumption and wage growth.

Looking past the pandemic, it is possible that some of the shocks brought about by the pandemic, such as the technology shock, may endure in the years to come. Digital transformation at the corporate level has the possibility to buttress productivity gains and enable greater diffusion of productivity beyond the pandemic.

Spotlight on real estate

Prior to the pandemic, the housing market downturn that began in 2018 precipitated the three rate cuts the Federal Reserve undertook in 2019.

The residential housing market was beginning to turn around in the two quarters before the pandemic hit.

The pandemic has brought into stark relief the utility one obtains from one’s home – increasing demand for homes and home improvement.

This rise in demand for utility coupled with the ability for 35% of the workforce to work from home (WFH) has led to a fall in demand for high-cost urban housing in favor of suburban homes and homes in cities with lower living costs.

The ongoing WFH phenomenon is affecting central business district real estate with everything including offices to retail to apartments being adversely impacted.

The big question for central business district real estate centers is the WFH factor. While many firms will keep a greater WFH component in place than prior to the pandemic, they recognize the need for in person collaboration, establishing and maintaining corporate culture, and the benefits of passive learning that occurs with multiple generations of employees working together in the same office.

While it may take time, we believe central business districts will come back from the pandemic and that the centuries-old progression of humans urbanizing will not be substantially reversed.

Read the full report at https://www.kpmg.us/content/dam/global/pdfs/2021/tale-of-two-economies.pdf

By Constance L. Hunter, Kenneth Kim, and Henry Rubin 

About the authors: Constance L. Hunter, CBE, is Chief Economist at KPMG; Kenneth Jim, CBE, is Senior Economist; Henry Rubin is Economic Analyst.

Tags: #GlobalPandemicOpinion

Related Posts

How a Data-Driven Mindset Powers McAfee’s Growth
Opinion

How a Data-Driven Mindset Powers McAfee’s Growth

Blackstone’s Jon Gray on Strategic Discipline, AI, and Entrepreneurial Leadership
Opinion

Blackstone’s Jon Gray on Strategic Discipline, AI, and Entrepreneurial Leadership

Canada, India move closer to trade deal
Opinion

Informing Strategic Planning Amid Tariff Uncertainty for Canadian Municipalities

A paradigm shift in supply chain operations: From agent-led to AI-led
Opinion

A paradigm shift in supply chain operations: From agent-led to AI-led

6 steps toward your retirement goals
Opinion

6 steps toward your retirement goals

Dollar continues record rally
Opinion

U.S. Economic Confidence Slightly Improved, Still Negative

How U.S. steel and aluminum tariffs would impact Canada’s economy
Opinion

The impact of US trade policy on jobs and inflation in Canada

Key Takeaways From Treasury’s Foreign Exchange Report
Opinion

Key Takeaways From Treasury’s Foreign Exchange Report

CVCA CEO Kim Furlong to step down
Opinion

What I’ve learned about building winning businesses

Inspiring vs. Infuriating: The Science Behind Great Leadership
Opinion

Inspiring vs. Infuriating: The Science Behind Great Leadership

No Result
View All Result

Recent Posts

  • What makes the Royal Edinburgh Military Tattoo so special?
  • Beyond the Machine: Why Human-Made Art Matters More in the Age of AI
  • 7 Benefits of High Intensity Interval Training
  • Paramount CEO explains why company paid Trump millions in 60 Minutes settlement
  • SAS CEO announces Air France–KLM to become majority owner

Archives

Categories

  • Art & Culture
  • Business
  • CEO Interviews
  • CEO Life
  • Editor´s Choice
  • Entrepreneur
  • Environment
  • Food
  • Health
  • Highlights
  • Industry
  • Innovation
  • Issues
  • Management & Leadership
  • News
  • Opinion
  • PrimeZone
  • Printed Version
  • Technology
  • Travel
  • Uncategorized

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

  • CONTACT
  • GENERAL ENQUIRIES
  • ADVERTISING
  • MEDIA KIT
  • DIRECTORY
  • TERMS AND CONDITIONS

Advertising –
advertising@ceo-na.com

110 Wall St.,
3rd Floor
New York, NY.
10005
USA
+1 212 432 5800

Avenida Chapultepec 480,
Floor 11
Mexico City
06700
MEXICO

  • News
  • CEO Interviews
  • Opinion
  • Technology
  • Environment
  • CEO Life

  • CONTACT
  • GENERAL ENQUIRIES
  • ADVERTISING
  • MEDIA KIT
  • DIRECTORY
  • TERMS AND CONDITIONS

Advertising –
advertising@ceo-na.com

110 Wall St.,
3rd Floor
New York, NY.
10005
USA
+1 212 432 5800

Avenida Chapultepec 480,
Floor 11
Mexico City
06700
MEXICO

CEO North America © 2024 - Sitemap

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • CEO Interviews
  • Opinion
  • Technology
  • Environment
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.