COVID-19 impacts global construction business
The coronavirus (COVID-19) outbreak is causing major economic disruption with even more severe impacts compared to the Great Financial Crisis in 2007-08, as it hits households, businesses
The coronavirus (COVID-19) outbreak is causing major economic disruption with even more severe impacts compared to the Great Financial Crisis in 2007-08, as it hits households, businesses, financial institutions and markets at the same time. Countries with a high degree of openness, less fiscal capacities and a strong dependency on heavy affected sectors, e.g. tourism, might suffer the most.
The economic fallback caused by the virus will strike heavy in many parts of the world. Imminent insolvency of stakeholders along entire supply chains cannot be excluded and is destined to cause anxiety, uncertainty and turmoil across all sectors.
The impacts of the virus on the global construction business might prove to be detrimental. Contractors are at the forefront as they are service and product providers at the same time. Covid-19 affects both material and labour, key cost components of construction projects, and by doing so, challenge on-going project delivery, companies' liquidity and whole business models.
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