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Even though there were predictions that the economic recovery will take on the V or the U shape, meaning that the economy will be back on its feet either sooner or later, it looks like that will not be the actual case. Many factors are contributing to this and the turbulent situation in every imaginable sphere of American life is shaking the society to its core.

Disparities in the Industries

What currently is happening is that the recovery is taking the form of the letter K. What does this mean? This means that the pace of the recovery is not the same for every industry and that some of them, like tourism, will suffer long-term pandemic consequences. 

Since the Covid-19 pandemic, all of the US economic growth of 2018 and 2019 was simply erased. With nearly 11 million lost jobs, the current crisis is an incredible shock as for the system, as for millions of families. 

However, even as the pandemic is painting a depressing picture, certain industries stood out in the coronavirus outbreak and are fighting back. Mainly those businesses that took this situation as a chance and a push toward digitizing their offers as much as possible. This was also a wake-up call for many businesses to change their operating models and improve their organization.

2020 as a Challenging Year for Economy

The uncertainty of what lies ahead is heavily dictated by the coronavirus. Some countries have managed to successfully storm through it, such as New Zealand and Australia. As the wave of infection spread, other countries were caught unprepared and the results have been devastating. Until the seriousness of the virus was confirmed and safety measures, such as social distancing, were installed, nobody had any idea how this would affect the economy.

Companies put their investments on hold, people have lost their jobs, hirings have been stalled. The business climate is changing and new decisions have been taken. The same goes for consumers on the individual level. People started thinking more about their spending habits and started focusing more on savings during hard times. 

However, there are a lot of examples when companies took previous crises as an opportunity to bring something new to the table. Did you know that Airbnb and Uber, some of America’s largest companies, started out during the recession of 2008? With just enough resilience and a dose of courage, we will probably see a surge of new companies with fresh, new ideas and perspectives of tomorrow.