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- ECONOMIC IMPACT -
Latest update: 17 February
The Japanese economy expanded by 3% (YoY) in Q4 2020. However, economic growth for the full year 2020 shrank by 4.8% according to the Cabinet Office.
The IMF projects global economic growth at 5.5% for 2021, an upward revision from the 5.2% rise estimated in October 2020.
The IMF forecasts India’s economic growth at 11.5% in 2021, which would make it the only major economy to post a double-digit growth.
S&P Ratings forecasts the economic growth rate of China at 7% in 2021, following a 2.3% growth recorded in 2020.
Impact of Covid-19 on Employment
- SECTOR IMPACT: TRAVEL AND TOURISM -
Latest update: 3 March
Transport market impact
Southwest Airlines announced a net loss of $3.1bn, compared to a net profit of $2.3bn in 2019.
American Airlines announced a full-year net loss of $9.5bn for 2020.
Travel enters a new era
Concerns over new variants that may be more contagious have led to the re-imposition of stringent travel restrictions and quarantine requirements in many parts of the world, most notably in Europe.
In the US, the new Biden administration has reintroduced travel restrictions that were lifted towards the end of the Trump administration. This does little to inspire confidence in booking travel.
In response, companies are adapting their operations Airlines are once again reducing flight schedules, while hotels continue to work on making themselves Covid-19 secure. Tourism boards have, in many cases, been forced to shift their focus towards attracting people from their home (domestic) market.
As results announcement season approaches, analysts are bracing themselves for large losses and calls for caution from CEOs. However, several countries are starting to make notable strides in terms of vaccine rollout programmes and this is cause for cautious optimism as the year progresses.
Key Travel And Tourism developments