The Economic Impact of COVID-19: According to Business Leaders
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The Economic Impact of COVID-19, According to Business Leaders

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The Economic Impact of COVID-19, According to Global Business Leaders

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The Economic Impact of COVID-19: Positives and Negatives

The global pandemic has disrupted business activities worldwide. But COVID-19’s economic impact has varied across regions, and the consequences have been largely dependent on a region’s economic position.

Using survey data from the World Economic Forum’s 20th Global Competitiveness Report, this graphic showcases the economic impact of COVID-19 worldwide. This year’s survey was conducted between February and July 2020 and includes responses from 11,866 business executives across 126 economies.

As you’ll see, the data was collected with the specific focus of contrasting the pandemic’s effects on developing economies compared to advanced economies.

Top Negative Impacts of COVID-19

By comparing business leaders’ responses in 2020 to their answers over the last three years, some clear trends have emerged.

In advanced economies, the top negative economic impact of COVID-19 has been a decline in competition, followed by reduced collaboration between companies and a growing challenge in finding and hiring skilled workers:

RankFactor% Change (2020 vs. 3-Yr Avg)
1Competition in network services-2.9%
2Collaboration between
companies
-2.6%
3Competition
in professional services
-2.3%
4Competition in retail services-1.8%
5Ease of finding skilled employees-1.5%

What’s driving this reduced competition in advanced economies?

One factor could be the increased use of online platforms. Ecommerce is heavily dominated by a select number of retailers. Because of this, bigger retailers like Amazon have seen massive boosts in their online sales, while many smaller brick-and-mortar businesses have been struggling.

While negative impacts on advanced economies are centered around market concentration and talent gaps, developing countries have faced different problems this year, like increased crime and governance issues:

RankFactor% Change (2020 vs. 3-Yr Avg)
1Business costs of crime and violence-2.5%
2Judicial
independence
-2.4%
3Organized crime-1.2%
4Extent of market dominance-0.6%
5Public trust of politicians-0.4%

It’s important to note that in the 2018 and 2019 surveys, organized crime and business costs related to crime and violence were trending downward. Because of this, the World Economic Forum suggests that we consider this year’s increase in these areas as as a temporary COVID-induced setback rather than a long-term issue.

Top Positive Impacts of COVID-19

Despite the struggles brought on by COVID-19, the pandemic has also triggered positive change. In fact, business leaders perceived more positive developments this year than negative ones.

In advanced economies, the top positive impacts were government responsiveness to change, followed by internal collaboration within companies:

RankFactor% Change (2020 vs. 3-Yr Avg)
1Government's responsiveness to change8.2%
2Collaboration within a company4.6%
3Venture capital availability4.4%
4Social safety net protection4.2%
5Soundness of banks4.0%

Interestingly, internal collaboration improved while external collaboration got worse. This is likely because companies had to adapt to changing work environments, while also learning how to collaborate with one another through remote working.

Internal collaboration didn’t just improve in advanced economies. In fact, developing economies experienced several of the top positive impacts that advanced economies saw as well:

RankFactor % Change (2020 vs. 3-Yr Avg)
1Collaboration within a company6.9%
2Government's responsiveness to change6.8%
3Efficiency of train transport services5.9%
4Venture capital availability5.9%
5Country capacity to attract talent5.8%

While perceptions on official responsiveness to change increased, public trust in politicians decreased slightly. This indicates that, while government responses to COVID-19 may have been received well in developing economies, overall feelings towards political leaders did not waiver.

How Have Countries Stayed Strong During the Pandemic?

While the impacts of COVID-19 varied between advanced and developing economies, business leaders across the board identified some common features that helped countries remain resilient:

  1. Economic digitization and digital skills
    Social distancing has been a key response to the pandemic. Because of this, countries that were set up for remote work have fared better than others. Netherlands, New Zealand, and Finland are a few examples.
  2. Safety nets and financial soundness
    Countries with established support systems for companies and citizens were in a better position to keep their economies afloat. Denmark and Norway provided much-needed support to their households, while Taiwan and the U.S. were able to aid businesses thanks to strong financial systems.
  3. Governance and planning
    Balancing health priorities with economic and fiscal policies was a delicate dance this year. Countries that provided relatively stable political frameworks were Singapore, Luxembourg, Austria, and the United Arab Emirates.
  4. Healthcare system and R&D
    A strong healthcare system meant widespread access to health services needed during the pandemic, as well as established public health protocols. Japan, Spain, and Taiwan were good examples of this.

Will these key features of competitiveness remain effective measures of a strong economy in 2021, or will our benchmarks for success evolve post-pandemic?

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Mapping The Biggest Companies By Market Cap in 60 Countries

Tech, finance or energy giant? We mapped the biggest companies by market cap and industry.

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The Biggest Companies By Market Cap in 60 Countries

Tech giants are increasingly making up more of the Fortune 500, but the world’s biggest companies by market cap aren’t so cut and dry.

Despite accounting for the largest market caps worldwide—with trillion-dollar companies like Apple and contenders including Tencent and Samsung—tech wealth is largely concentrated in just a handful of countries.

So what are the biggest companies in each country? We mapped the largest company by market cap across 60 countries in August 2021 using market data from CompaniesMarketCap, TradingView, and MarketScreener.

What are the Largest Companies in the World?

The world has 60+ stock exchanges, and each one has a top company. We looked at the largest local company, since many of the world’s largest firms trade on multiple exchanges, and converted market cap to USD.

CountryCompanyIndustryMarket Cap (August 2021)
USAAppleTechnology$2.5T
Saudi ArabiaSaudi AramcoEnergy$1.9T
TaiwanTSMCTechnology$594.5B
ChinaTencentTechnology$554.0B
South KoreaSamsungTechnology$429.7B
FranceLVMHConsumer Cyclical$414.3B
SwitzerlandRocheHealthcare$350.0B
NetherlandsASMLTechnology$322.6B
JapanToyotaConsumer Cyclical$251.6B
DenmarkNovo NordiskHealthcare$236.7B
IrelandAccentureTechnology$208.2B
IndiaReliance IndustriesEnergy$198.1B
AustraliaBHP GroupMaterials$191.7B
CanadaShopifyTechnology$185.7B
UKAstrazenecaHealthcare$182.0B
GermanySAPTechnology$174.6B
SingaporeSEATechnology$152.3B
Hong KongAIAFinancials$146.4B
BelgiumAnheuser-Busch InbevConsumer Staples$122.7B
SpainInditexConsumer Cyclical$108.3B
BrazilVALEMaterials$103.9B
RussiaSberbankFinancials$96.7B
ItalyEnelUtilities$93.7B
ArgentinaMercadoLibreConsumer Cyclical$89.5B
SwedenAtlas CopcoIndustrials$84.1B
South AfricaNaspersTechnology$74.1B
NorwayEquinorEnergy$67.9B
UAEEtisalatCommunication$58.7B
MexicoWalmexConsumer Staples$58.1B
IndonesiaBank Cental AsiaFinancials$54.8B
KazakhstanKaspi.kzFinancials$49.8B
QatarQNBFinancials$48.2B
FinlandNordea BankFinancials$48.0B
LuxembourgArcelorMittalMaterials$36.3B
AustriaVerbundUtilities$33.7B
ThailandPTT PCLEnergy$30.1B
ColombiaEcopetrolEnergy$26.7B
MalaysiaMaybankFinancials$23.7B
PhilippinesSM InvestmentsConsumer Cyclical$22.9B
KuwaitKuwait Finance HouseFinancials$21.9B
PortugalEDP GroupUtilities$21.0B
VietnamVinhomesReal Estate$17.1B
IsraelNICETechnology$16.9B
KenyaSafaricomCommunication$16.0B
Czech RepublicÄŒEZ GroupEnergy$15.8B
New ZealandXeroTechnology$15.8B
TurkeyQNB FinansbankFinancials$15.8B
HungaryOTP BankFinancials$15.6B
ChileEnel AmericasUtilities$14.3B
MoroccoMaroc TelecomCommunication$13.6B
PolandPKO Bank PolskiFinancials$12.6B
CyprusPolymetalMaterials$10.0B
NigeriaDangote GroupMaterials$10.0B
BahrainAhli United BankFinancials$8.6B
GreeceOTE GroupCommunication$8.4B
PeruCredicorpFinancials$8.0B
EgyptCommercial International BankFinancials$5.9B
IcelandMarelIndustrials$5.8B
OmanBank MuscatFinancials$4.2B
PanamaCopa HoldingsIndustrials$3.1B

Many are former monopolies or massive conglomerates that have grown in the public space, such as South Africa’s Naspers and India’s Reliance Industries.

Others are local subsidiaries of foreign corporations, including Mexico’s Walmex, Chile’s Enel and Turkey’s QNB Finansbank.

But even more noticeable is the economic discrepancy. Apple and Saudi Aramco are worth trillions of dollars, while the smallest companies we tracked—including Panama’s Copa Group and Oman’s Bank Muscat—are worth less than $5 billion.

Finance and Tech Dominate The Biggest Companies By Market Cap

Across the board, the largest companies were able to accumulate wealth and value.

Some are newer to the top thanks to recent success. Canada’s Shopify has become one of the world’s largest e-commerce providers, and the UK’s AstraZeneca developed one of the world’s COVID-19 vaccines.

But the reality is most companies here are old guards that grew on existing resources, or in the case of banks, accumulated wealth.

IndustryBiggest Companies by Country
Financials16
Technology12
Energy6
Materials5
Communication4
Consumer Cyclical4
Utilities4
Healthcare3
Industrials3
Consumer Staples2
Real Estate1

Banks were the most commonly found at the top of each country’s stock market. Closely behind were oil and gas giants, mining companies, and former state-owned corporations that drove most of a country’s wealth generation.

But as more economies develop and catch up to Western economies (where tech is dominant), newer innovative companies will likely put up a fight for each country’s top company crown.

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Which Companies Belong to the Elite Trillion-Dollar Club?

Only a few companies have broken the 13-digit market cap barrier to join the $1T+ club. Who’s a member, and who’s hot on their heels?

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Which Companies Belong to the Elite Trillion-Dollar Club?

Just a handful of publicly-traded companies have managed to achieve $1 trillion or more in market capitalization—only six, to be precise.

We pull data from Companies Market Cap to find out which familiar names are breaking the 13-digit barrier—and who else is waiting in the wings.

Footnote: All data referenced is as of August 17, 2021.

The Major Players in the Game

Apple and Microsoft are the only two companies to have shattered the $2T market cap milestone to date, leaving others in the dust. Apple was also the first among its Big Tech peers to ascend to the $1 trillion landmark back in 2018.

CompanyValuationCountryAge of company
Apple$2.48T🇺🇸 U.S.45 years (Founded 1976)
Microsoft$2.20T🇺🇸 U.S.46 years (Founded 1975)
Saudi Aramco$1.88T🇸🇦 Saudi Arabia88 years (Founded 1933)
Alphabet (Google)$1.83T🇺🇸 U.S.23 years (Founded 1998)
Amazon$1.64T🇺🇸 U.S.27 years (Founded 1994)
Facebook$1.01T🇺🇸 U.S.17 years (Founded 2004)

Facebook dipped in and out of the $1T+ club in July 2021, and continues its capricious movement. With just 17 years under its belt, it’s the youngest company ever to reach this valuation milestone—though not without some wild rides along the way.

State-owned oil and gas giant Saudi Aramco is the only non-American company to make the trillion-dollar club. This makes it a notable outlier, as American companies typically dominate the leaderboard of the biggest corporations around the world.

Who Else Might Join the Trillion-Dollar Club?

Companies with a market capitalization above $500 billion are also few and far between. Within this next list of six companies, the world’s most valuable automaker Tesla is another strong candidate to eventually join the Four Comma Club.

As per usual, analyst views on Tesla are quite varied. That said, some on Wall Street are predicting that Tesla might reach $3 trillion in market cap within the decade, owing to significant current and projected demand for electric vehicles (EVs) and driverless systems.

CompanyValuationCountryAge of company
Tesla$659B🇺🇸 U.S.17 years (Founded 2003)
Berkshire Hathaway$655B🇺🇸 U.S.182 years (Founded 1839)
TSMC$576B🇹🇼 Taiwan34 years (Founded 1987)
Tencent$537B🇨🇳 China23 years (Founded 1998)
Visa$515B🇺🇸 U.S.63 years (Founded 1958)

Visa, one of the pioneers of consumer credit in the United States, continues to innovate even 63 years after its founding. In attempts to expand the reach of its already massive payments ecosystem, Visa is experimenting with acquisitions, and even dipping its toes into cryptocurrency with some success.

Whether the next company to join the trillion-dollar club comes from the U.S., from the tech industry, or out of left field, it’s clear that it has some pretty big shoes to fill.

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