The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
1
print
Print
OtherRenee McKeownThu 26 Mar 20

Business Fifty-Fifty on Coronavirus Impact

1c4e2cc7-2166-4316-89db-d4174f4f9d04

Half of Australian businesses experienced an adverse impact from Covid-19 even before social distancing according to the Australian Bureau of Statistics.

Prior to phase 1 social distancing measures 49 per cent of businesses were fairing worse, although that amount is expected to move to 86 per cent as government measures increase and the coronavirus spreads.

Accommodation and food services bore the brunt of Covid-19 with 78 per cent recording negative impacts and 96 per cent expecting it to get worse.

Meanwhile the least impacted by the virus were businesses in professional, scientific and technical sectors with only 21 per cent affected; electricity, gas and water supply were 34 per cent; and mining was only 37 per cent.

A reduction in local demand was the most common problem experienced by 82 per cent of the businesses surveyed and was also the most common impact expected to get worse.

Of impacted businesses, more than a third had experienced staff shortages and 59 per cent expected to experience staff shortages in coming months.

Moody analysts said business activity was likely to fall sharply across advanced economies in the first half of 2020 and will recover slowly with consumer demand.

“We now expect G20 real gross domestic product to contract by 0.5 per cent in 2020, followed by a pickup to 3.2 per cent growth in 2021.

“In November last year, before the emergence of the coronavirus, we were expecting G20 economies to grow by 2.6 per cent in 2020.”

Globally, many authorities were adopting important policy measures such as income guarantees and regulatory forbearance in an effort to reduce the risk of simultaneous defaults weakening financial stability.

“We expect policy measures to continue to grow and deepen, as the consequences of the shock in terms of depth and duration become clearer,” Moody analysts said.

Despite the impact of Covid-19 only just hitting the Australian market, the uncertainty surrounding the economic outlook has already caused multiple ASX-listed companies to withdraw their guidance for the 2020 financial year.

Dexus was the latest company to withdraw guidance following from Mirvac, REA Group and Stockland.

However other businesses were adapting to altered consumer demand including alcohol distilleries who have started the production on ethanol for hand sanitiser.

RetailAustraliaFinanceSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
The Dorcas Street project replaces demolished walk-ups with 131 modern apartments, the first step in a multi-stage redev…
LATEST
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/businesses-fifty-fifty-on-coronavirus-impact