Mois : octobre 2020

It would be easy to assume the economy has only changed due to COVID-19, and while this is true in some respects, others may view the changes as a fast-tracked version of what was expected in any event.

There was an economic downturn experience during 2019, which presented a series of challenges before the pandemic started. This matched with the onset of Coronavirus soon meant the economy was on an uneven footing.

However, the pandemic has meant many businesses have been forced to commit to a new way of trading, and some are surprised by how successful this has been.

Past pandemics were difficult as a lot of the freedom was taken away from businesses, and while there are similar instances witnessed with COVID-19, the advancement of technology makes it easier to wade through troublesome waters regarding the economy.

Phillipe Dessertine is an economist that has been at the heart of many debates and talks, with many hanging on his every word, and it is not difficult to understand why. Dessertine has always cut through the noise when it comes to a strong economy, and often comes up with solutions that sound simple and effective.

Regions Need to Prepare for Change and Embrace Them

Although every business will be keen to fight for its survival, everyone has a part to play. For example, in regions where financial support is being offered, it is important that the correct infrastructure is introduced.

Simply setting aside a budget and issuing it to struggling businesses is not always enough. Guiding and reassuring businesses through a pandemic allows it to become more accustomed to the changes being made and allows for the right changes to be made.

Of course, there will always be people that frown upon the concept of technology, but it must be recognized that the advancement of technology has allowed many businesses to flourish in ways they never have before. As such, it needs to be embraced to survive in the economy of tomorrow.

Even historic roles including farming can expect to see an overhaul to the agricultural industry. But this doe does not mean that farmers must give up their role, rather adapt to a world.

The Future Allows for More Avenues to be Explored

It is fair to say that the world can be challenging at times, and the last thing people want is change. But change should be a good thing, especially when it comes to the economy.
Although there are roles that can be carried out remotely, there are plenty that can. This means a business can continue its operations without having to be concerned about social distancing or expensive business rates.

An example of change can be viewed with personal trainers, who will still offer one-to-one sessions, while also having online classes in place should lockdown restrictions be applied. Although a basic example, it does show how beneficial change can be, regardless of how subtle it is.

Why the Economy Will Thrive in the Future

For many years, some regions have continued to invest in aged and dated technology, while others have embraced the concept of change, and even introduced renewable energy as part of everyday life. Of course, no two regions are ever the same, and each can come with its own challenges.

However complex change is it is important to focus on the end goal. Investing in new technology including fibre and data security will yield more benefits than throwing money at dated techniques that hardly break even.

Phillipe Dessertine is a French economist that has held several debates and televised talks over the years, and given the impact COVID-19 has had on the French economy, who better than to shine a light on the future of France than the man himself.

Of course, there have been several proposals put forward by the French Government, but the longevity of such measures remains in question.

Evidently, change is needed, but it must be the right type of change for the economy to thrive moving forward.

French Economy Could Take as Long as Two Years to Recover from the Pandemic
Talking on French radio station Europe 1, Dessertine confirmed the consequences of the crisis have been felt and will likely be felt for the next couple of years. This follows news from the Banque de France, which has a similar viewpoint.

As well as a drop in GDP, there is an expected rise in unemployment. Following this, it is likely that the smaller business will feel the pressure of the pandemic, so it creates a vicious circle that can be difficult to stop.

This can be attributed to using methods that are no longer as viable as they used to be, instead of focusing on new advancements that could introduce a series of benefits, including remote working and sourcing new talent.

Why Aren’t Tax Increases the Answer?

On paper, the increasing of taxes can seem like a proactive way of balancing the books, but given the reduced amount of people working, this may not be as effective as some would first assume. There is also the question as to what type of tax will be increased.
For example, VAT is a tax added to many purchases, and increasing this could mean that purchases are more expensive, which means the economy is affected in a different way.

Another factor of tax increases that need to be considered is how long they will be used for, if used at all. If tax increases are put in place but there are no guidelines as to how the funding should be used to better support the economy, then it could offer a spile as opposed to a long-term plan.

Is a Two-Year Economy Recovery Realistic?

For many, being able to recover from the pandemic could be too optimistic but can be achieved with the appropriate infrastructure in place. This could be in the guise of advice for businesses that need to adapt to new ways of working, as well as ensuring the technological infrastructure is the best it can be.

There are significant challenges that need to be faced moving forward, but embracing change and finding new ways of working, researching and delivering information allows for a more connected world that allows for more innovation, which can help improve the economy on a global scale as well as locally.

The pandemic has shown that we are never fully aware of what the world of tomorrow will bring, so it is important to be as pro-active as possible when preparing for future success. Philippe Dessertine is a financial expert that has taken part in several talks and debates and is confident that COVID-19 does not always mean a poor economy.

Those that invest in stock and shares will find that the value of such commodities was reduced dramatically. Although connected to COVID-19 at a surface level, the actual economic crisis was caused by the knee-jerk reaction of the States.

Although understandable, it does show the importance of understanding the world of tomorrow for the economy to stay afloat.

The Economy Crisis Caused Unprecedented Shock

Understandably, the onset of COVID-19 left a lot of businesses worried, not to mention several Government bodies. The crisis was caused by a series of actions designed to improve the situation, btu made it more fragile.

Dessertine states that simply injecting liquidity into the economy is not a solution unless there is a strategy supporting the financial aspects.

Why Support is Essential

Given the ramifications of the economic downturn, new wealth will need to be created, but this often takes more that financial support. Some businesses may be able to prolong their activities for a few months using government support, but unless they are able to readjust the goals of the business, it still faces the danger of becoming stagnant.

Money used for support could be used very quickly, and not taking what may happen tomorrow into account means that more extreme measures have to be used moving forward which can mean more pressure is put on the economy.
As well as ensuring the right support network is put in place, there also has to be adoption of new ways of working, as using methods that are no longer beneficial will simply achieve the same lacklustre results.
How Can Wealth Be Recreated Successfully?
During other traumatic times, it has been commonplace for people around the world to join forces, and the onset of COVID-19 is no different. Of course, everyone has their opinion on the best way forward in combating the virus and the problems it presents but being able to connect with others allows for more innovation.

Government support can seem like a great thing at first, but it can come with its own consequences. There are many rippled effects caused by such actions. For example, USD ca be affected by the deficits of the States, but those in European locations do not have the same solutions available to them.

Asian Dynamism is the Key to Success

For the economy to strive moving forward it needs to take advantage of the Asian dynamism, something that has been put at risk in the past due to conflicts over the TPP.
As well as pioneering in several different sectors to great success, China has been keen to promote the Regional Economic Partnership, an alternative to the TPP. The partnership excludes both the US and TPP members, but adds other countries such Indonesia, South Korea and Thailand.

The US has played a vital role in China’s road to success in the past, but the world today is vastly different, so it is important to understand the value surrounding the agreement rather than just the rules.

Phillipe Dessertine is a financial expert at the core of a turning point in economic history, including the risk of a crash linked to sub primes in 2007. Dessertine is also the director of the Centre of Studies and Research on the Organizations and Strategy to the University of Paris, West Nanterre.
Not only as Dessertine appeared on several television shows, he has also worked with several Government bodies, meaning that his viewpoints are something to take seriously, especially in the current climate.
Given the current financial climate, it should come as no surprise that experts such as Dessertine have been thrust into the limelight due to their innovative take on the situation.
Many are keen to embrace the advice of experts in the sector, as some Governments attempt to offer a blanket solution for all problems, which often meets significant markers when it comes to businesses and the way they should act.
Financial experts will give more impartial advice that is not given to gain followers or win elections, rather prepare businesses for the world of tomorrow.
A Return to the Gross Domestic Product Seen in 2019
Given the seriousness of the pandemic, it would be easy to assume that GDP would dip, and at the start it did. However, Dessertine points out that although there was a decrease, this was only -10% when compared to the estimated -14%.
Dessertine has attributed the increase of the GDP to new ways of operating, and estimates that the GDP should return to the levels seen in 2019
New Ways of Working Pave the Way for a Successful Future
Dessertine points out that although there is support in place for businesses, the amounts in place should be used to support businesses rather than attempt to relaunch.
Phillipe Dessertine has always looked at situations from several vantage points, and although the prospect of a budget for recovery is welcomed, it would need to be increased dramatically for it to have the desired effect.
Increasing the amount offered for support also raises another problem, in that it causes more debt, so finding the right balance is essential when moving forward in the world of tomorrow.
The positivity shown regarding increased GDP does show that despite the pandemic, there is no requirement for the economy to be shut down
Dessertine reinforces the importance of finding new ways of working. While the frustration surrounding this is understandable, companies that cannot adapt to the changes taking place in the world could find themselves falling behind.
Positivity Needs to be Embraced
Given the impact that COVID-19 has had on many industries, it can be difficult to look on the bright side. However, positivity must be a core component in ensuring that testing times do not halter globalisation.
As well as ensuring that changes are enacted, it is also important to have confidence in these changes, otherwise they could fail to have the desired effect.
It would be easy to assume that the biggest recession witnessed in history was due to the onset of COVID-19, but it was due to the actions taken following the announcement of the virus. Taking time to understand the world of today and the changes that need to be made ensure businesses are primed for success.
It is understandable that some feel that COVID-19 has presented many problems but adding a positive spin with the solutions set out can mean a business becomes more pro-active and innovative, making a business stronger in the long-term.

Philippe Dessertine is an economist and specialist in finance that has not only graced several television screens over the years but has also worked with several government bodies from a financial vantage point.

Given the current climate regarding COVID-19, it should come as no surprise that the much focus has been shed onto the effects COVID-19 has had on the economy, with the outcome being surprising to many.

Of course, CVOID-19 has caused significant upheaval in the world of finance, especially during the beginning phase. The confusion surrounding the pandemic meant that businesses did not how to react, and some may have acted incorrectly at the start.
However, when mistakes are made a lot can be learned, and many businesses around the world have accepted it could be sometime before the virus is contended with and have enacted changes that align to this.

Some businesses can be difficult to change, but in difficult times, it is important to think outside the box. Sure, there is Government support in place in some instances, but this is often in short supply, and will have little effect if the goals of the business are contradictory to what is happening in the real world.

Philippe Dessertine Speaks at the Fipec General Meeting in Paris
Fipec is an association that deals with wood preservation industries, as well as those who operate in the paint, ink and glue sector. As expected, the focus of the meeting was health-centric, but was still able to host to almost 150 attendees while following the current guidelines in place.
The talks taking place were also unique. Rather than asking businesses to wait for an update, the talks were focused on ensuring businesses are fully aware of what they are capable of when combating the unknown virus.

Dessertine covered the major challenges of recovery but was keen to reinforce that the current crisis was not connected to the economy. The economic downturn experience in the USA was due to the flipping of the switch when in panic mode, which led to the biggest recession in history.
However, the initial lows are starting to balance, and Philippe Dessertine believes a strong recovery will be seen between 2021 and 2022, with Asia playing an important part. Another point made was that the economy will change moving forward and needs to be embraced for businesses to prosper.

Coronavirus is an Accelerator of History

As the pandemic has changed the way that many people work, it has meant more focus is being dedicated to areas that may have been neglected otherwise. An example, of some focal areas include climate change and advancements made withing big data.

The forthcoming technological change is believed to surpass the industrial revolution of the 18th and 19th century, so innovation needs to be prominent.

The onset of COVID-19 has not been good news for anyone, but when moving forward it is crucial that businesses are realistic of what tomorrow will bring. Although it comes with its share of bad news, COVID-19 can also present an opportunity to find new ways of working, as well as new ways of communication with customers and clients.