The Evolving Effect of COVID-19 on the Private Sector

This brief provides a descriptive analysis of the evolving effect of the COVID-19 (coronavirus) pandemic on the private sector of 40 countries. It focuses on the essential aspects of business operations: namely, firms' survival, production of...

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Main Authors:	Karalashvili, Nona, Viganola, Domenico
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	CORONAVIRUS COVID-19 PANDEMIC IMPACT GLOBAL INDICATOR SMALL AND MEDIUM-SIZED ENTERPRISES ENTERPRISE SURVEY ECONOMIC SHOCK SALES REVENUE LAYOFFS FINANCIAL FRAGILITY
Online Access:	http://documents.worldbank.org/curated/en/580421624568529169/The-Evolving-Effect-of-COVID-19-on-the-Private-Sector http://hdl.handle.net/10986/35869

id	okr-10986-35869
recordtype	oai_dc
spelling	okr-10986-358692022-08-03T15:15:30Z The Evolving Effect of COVID-19 on the Private Sector Karalashvili, Nona Viganola, Domenico CORONAVIRUS COVID-19 PANDEMIC IMPACT GLOBAL INDICATOR SMALL AND MEDIUM-SIZED ENTERPRISES ENTERPRISE SURVEY ECONOMIC SHOCK SALES REVENUE LAYOFFS FINANCIAL FRAGILITY This brief provides a descriptive analysis of the evolving effect of the COVID-19 (coronavirus) pandemic on the private sector of 40 countries. It focuses on the essential aspects of business operations: namely, firms' survival, production of goods and services, and jobs. Firms have suffered massive demand and supply shocks, affecting nearly all sectors. These shocks and the consequent drop in revenues have dried up firms' cash flows, depleting their working capital and putting the private sector under considerable financial distress. This brief also examines the effect of the pandemic on firms' liquidity, providing general assessments of the variation of these effects by country income level and firm characteristics. Firms in lower-income countries seem to have been hit harder across several measures, such as declines in sales and the incidence of overdue financial obligations. Within countries, small and medium-sized enterprises (SMEs) with 5 to 99 employees seem to have fared more poorly than large firms. While some signs of a recovery in terms of sales and capacity utilization are emerging, the recovery is fragile, as it bypasses important aspects such as liquidity and job creation. For a full post-pandemic recovery, it is important that sound businesses that are facing a temporary liquidity problem survive, and the workforce rebounds. 2021-06-29T19:37:23Z 2021-06-29T19:37:23Z 2021-06-24 Brief http://documents.worldbank.org/curated/en/580421624568529169/The-Evolving-Effect-of-COVID-19-on-the-Private-Sector http://hdl.handle.net/10986/35869 English Global Indicators Briefs; No. 1 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CORONAVIRUS COVID-19 PANDEMIC IMPACT GLOBAL INDICATOR SMALL AND MEDIUM-SIZED ENTERPRISES ENTERPRISE SURVEY ECONOMIC SHOCK SALES REVENUE LAYOFFS FINANCIAL FRAGILITY
spellingShingle	CORONAVIRUS COVID-19 PANDEMIC IMPACT GLOBAL INDICATOR SMALL AND MEDIUM-SIZED ENTERPRISES ENTERPRISE SURVEY ECONOMIC SHOCK SALES REVENUE LAYOFFS FINANCIAL FRAGILITY Karalashvili, Nona Viganola, Domenico The Evolving Effect of COVID-19 on the Private Sector
relation	Global Indicators Briefs; No. 1
description	This brief provides a descriptive analysis of the evolving effect of the COVID-19 (coronavirus) pandemic on the private sector of 40 countries. It focuses on the essential aspects of business operations: namely, firms' survival, production of goods and services, and jobs. Firms have suffered massive demand and supply shocks, affecting nearly all sectors. These shocks and the consequent drop in revenues have dried up firms' cash flows, depleting their working capital and putting the private sector under considerable financial distress. This brief also examines the effect of the pandemic on firms' liquidity, providing general assessments of the variation of these effects by country income level and firm characteristics. Firms in lower-income countries seem to have been hit harder across several measures, such as declines in sales and the incidence of overdue financial obligations. Within countries, small and medium-sized enterprises (SMEs) with 5 to 99 employees seem to have fared more poorly than large firms. While some signs of a recovery in terms of sales and capacity utilization are emerging, the recovery is fragile, as it bypasses important aspects such as liquidity and job creation. For a full post-pandemic recovery, it is important that sound businesses that are facing a temporary liquidity problem survive, and the workforce rebounds.
format	Brief
author	Karalashvili, Nona Viganola, Domenico
author_facet	Karalashvili, Nona Viganola, Domenico
author_sort	Karalashvili, Nona
title	The Evolving Effect of COVID-19 on the Private Sector
title_short	The Evolving Effect of COVID-19 on the Private Sector
title_full	The Evolving Effect of COVID-19 on the Private Sector
title_fullStr	The Evolving Effect of COVID-19 on the Private Sector
title_full_unstemmed	The Evolving Effect of COVID-19 on the Private Sector
title_sort	evolving effect of covid-19 on the private sector
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/580421624568529169/The-Evolving-Effect-of-COVID-19-on-the-Private-Sector http://hdl.handle.net/10986/35869
_version_	1764483942714441728

The Evolving Effect of COVID-19 on the Private Sector

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