Covid-19 Executive Briefing
Understanding the economic impact of the Covid-19 pandemic and the implications for the automotive sectors
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- ECONOMIC IMPACT -
Latest update: 9 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: AUTOMOTIVE -
Latest update: 9 April 2020
The automotive sector is facing its biggest existential threat since the 2007–2009 financial crisis with multi-dimensional challenges. These include supply chain restrictions, workforce safety, and demand precipitation.
15.8%
GlobalData’s base Covid-19 scenario forecasts a fall in light vehicle sales of 15.8% on 2019. This scenario assumes actions to suppress the virus are successful and economies do not suffer much damage.
$113.3bn
The loss in potential revenue caused by the removal of 3.5 million light vehicles from production schedules in Europe and North America over the past few days, according to GlobalData estimates.
Sales in the US fell by 38.2% YOY in March, the worst performance in the month since 2009.
In major European markets, sales in March fell 46.3% YoY according to GlobalData analysis.
13.6 million
Base production forecast for North America, down 2.9 million from GlobalData’s earlier forecast
16.7 million
Base production forecast for Europe, down 15.7% from GlobalData’s previous forecast
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