Christine Lagarde (the President of the ECB) supposes that Eurozone economic growth could fall to 12% this year, "depending crucially on the duration of the containment measures and the success of policies to mitigate the economic consequences for businesses and workers ". Italy's and Spain's GDP are estimated to shrink by 9.5% and 9.4% respectively whereas the countries of Eastern Europe and Germany are expected to pass that stress-test with much softer effects. Hence, such divergence poses a threat to each single market and the euro area. Interestingly, inflation across the OECD area dropped from 2.3% to 1.7% upon two months, highlighting the most tremendous deceleration since the 2008 financial crisis. The European commission officials have forecasted that the economic activity in European countries, including the business activities and volumes of FDI will decline.
Nevertheless, companies are searching the ways to derive profit from the current situation. Microsoft intends to scale a digital investment in Poland and New Zealand. The investments footprint aims at domestic consumers to access cloud services and store data, what is "a major milestone towards delivering enterprise-grade cloud services in the country". Currently, Microsoft's global data centers have covered 60 locations.
Experts around the world continue to discuss how the revival of the world economy and the future of economic world will look like. They consider the current fall can be instrumental in future because it will cause an economic spurt. Additionally, there are experts' doubts about how the settled supply chains will be surviving. The growing awareness is that the lockdown measures will destroy the transnational chains, and the investment flow will change consequently.
More than half of investment promotion agencies (IPAs) across the globe have provided much-needed information from the major investors that are trying to overcome the consequences of Covid-19 in their region. The leading national IPAs bolstered direct survey by "contacting all prominent firms" in April. The most well-known investors such as Ray Dalio, Warren Buffett, Jeff Bezos and others consider that the pillars are: productivity growth which comes from people learning new skills; new monetary system establishing and external policy, based on common measurements and values that should be agreed. Supposedly, the best possible outcome can be achieved only through the global cooperation, and economic recovery will get through by meeting the new demand.
The brief survey conducted by Moglino SEZ confirmed that our investors prone to stick to independent and balanced decisions in business. Among the most influencing factors aim at making the decision, most respondents named fundamental market analysis, technical analysis of situations and industry analytics. In addition to the above, about 30% of respondents are also guided by gut feelings.
Noticing that utmost vital criteria highlighted that 100% of the respondents independently, have been searching for a suitable industrial and production site with a specific set of characteristics such as location, logistics potential, ready-made engineering infrastructure and interaction with a skilled, decisive team.
Our team is getting back from the remote office work next week. Thus, we should confirm it was an exciting experience to work with new approached technologies and procedures. All team members are going to extend productivity results and what is the most important they are working in a safe and healthy environment continuously.