Tag Archives: global economic uncertainty

How Sixty Percent Of Consumers Have Changed Shopping Behaviors Due To Covid

Global Consumer Spending to Plunge by 8.6% to $44.3trn by end of 2020

The coronavirus pandemic has changed almost every aspect of people’s daily lives, and consumer spending is no exception. The uncertainty of the COVID-19 crisis caused considerable changes in consumer habits, forcing them to cut down their budgets and prioritize spending.

According to data presented by StockApps.com, the coronavirus outbreak is expected to cut global consumer spending to $44.3trn in 2020, an 8.6% plunge year-over-year.

$4.2trn Drop in Spending Amid COVID-19 Crisis

Falling consumer spending has significant effects on overall Gross domestic product (GDP) growth, considering it accounts for almost 70% of GDP.

Before the COVID-19 crisis, global consumer spending has witnessed steady growth for five years in a row, revealed Statista, IMF, United Nations, World Bank, and Eurostat data. In 2015, it amounted to over $41.5trn. Over the next twelve months, this figure rose to $42.5trn and continued growing. Statistics show that in 2019, consumers worldwide spent a total of $48.5trn, the highest amount in a decade.

However, the coronavirus crisis triggered a sharp fall in 2020, with global consumer spending expected to plunge by $4.2trn year-over-year. Nevertheless, statistics show the following years are set to witness a recovery, with consumer spending growing by 20% to $53.5bn in 2022.

Statista data also revealed that Switzerland represents the leading country globally, with over $40,000 in consumer spending per capita in 2020. Luxembourg ranked second with around $5,000 less than that. Iceland, Denmark, and Norway follow, with $34,300, $25,800, and $25,600, respectively.

60% of Consumers Changed their Shopping Behavior

The Mc Kinsey & Company survey showed consumers became increasingly cautious with their spending in 2020. Even after countries lifted lock-downs, many consumers still see their incomes fall, forcing them to reduce budgets and change shopping habits.

Statistics show that increased time spent indoors led to significant growth in consumer spending on groceries, household, and home entertainment. Brazil, South Africa, and India lead in this category, with up to 30% consumer spending growth. Major consumer markets like the United States, United Kingdom, Germany, and China witnessed around 15% grocery shopping growth in the first half of the year.

However, with consumers being mindful of their spending and turning to less expensive products, 2020 has witnessed a plunge in clothes and accessories, outside entertainment, services, travel, and transportation spending. Respondents in all countries said they cut down spending in these categories between 20% and 50%.

The McKinsey survey also revealed the COVID-19 outbreak triggered a significant change in the shopping mindset. More than 60% of consumers globally have tried a different brand or shopped at another retailer during the crisis, mostly for convenience, value, and quality.

In China and the United States, over 75% of consumers reported trying a new shopping method, and 60% plan to stick with it post-crisis. The United Kingdom and Germany follow with 71% and 54% of consumers who practiced new shopping behavior. In Japan, where lockdowns weren’t imposed, only 33% of consumers changed their shopping mindset. For the Silo by Jastra Kranjec.

Featured image- Wicker basket by George’s Baskets.

Ont. Liberals – Our Province Second Only To California For Foreign Direct Investment

Today Minister of Economic Development and Innovation Brad Duguid announced that Ontario is partnering with companies for projects that will help create 550 new jobs and protect 1,056 existing jobs for families. The province is supporting company investments which will create new jobs for families, help spur growth and strengthen local economies.  These new jobs build upon the 97,700 net new jobs that have already been created in Ontario so far this year alone.

Ontario Helps Create Jobs
McGuinty Government Partners With Companies To Strengthen The Economy
NEWS October 27, 2011

Ontario is partnering with companies for projects that will help create 550 new jobs and protect 1,056 existing jobs for families.  The province is supporting company investments which will create new jobs for families, help spur growth and strengthen local economies.  These new jobs build upon the 97,700 net new jobs that have already been created in Ontario so far this year alone.
In the face of global economic uncertainty, Ontario continues to provide strong and stable business conditions which are helping companies create jobs with new
investments across the province. Partnering with local businesses and supporting business is part of the McGuinty government’s plan
Silo Direct Link to Ontario Government Budgets Website  in moving forward to create and support new and existing jobs across the province.

QUOTES
“The foundation of Ontario’s economy is our skilled workers and innovative companies.  Our government will continue its proactive approach to partner with business and industry. We will invest strategically to help companies grow, create jobs and help Ontario progress in this period of economic uncertainty.”
– Brad Duguid, Minister of Economic Development and Innovation
QUICK FACTS
*                     Since October 2003, Ontario has created 524,100 new jobs.

*                     In 2010, Ontario was named a top destination for foreign direct investment in North America, second only to California. The province attracted a total of 127 Foreign Direct Investment projects, which created more than 11,200 jobs.

*                     In June of this year, Ontario created more jobs than the rest of Canada and the United States combined.

*                     KPMG calculates that Ontario has an 11.3 per cent cost advantage for research and development relative to the United States.

*                     As a result of the tax changes implemented in Ontario, taxes on business investment were cut in half, making Ontario more competitive and encouraging business growth.

LEARN MORE

Read Ontario’s Progress Report 2011
Silo Direct Link to Ontario Governments Progress Report Website Check out government-funded programs and services.

Visit the Ministry of Economic Development and Innovation’s Silo Direct Link to Ministry of Economic Development and Innovation Website  website for comprehensive economic and trade news, including a toolkit for businesses.
Andrew Block, Minister Duguid’s Office, 416-276-0511
Neil Trotter, Communications Branch, 416-325-6716
Silo Direct Link to Ontario Governments Economy News Website

Disponible en français
NOUVELLES
Ministère du Développement économique et de l’Innovation

L’Ontario contribue à la création d’emplois
Le gouvernement McGuinty fait équipe avec des entreprises pour renforcer l’économie
NOUVELLES                                                                           Le 27 octobre 2011

L’Ontario fait équipe avec des entreprises en vue de réaliser des projets qui permettront de créer 550 nouveaux emplois et de protéger 1 056 emplois existants
pour les familles. La province aide les entreprises à faire des investissements qui créeront de nouveaux emplois pour les familles, stimuleront la croissance et renforceront les économies locales. Ces nouveaux emplois s’ajoutent aux quelque 97 700 nouveaux emplois nets qui ont déjà été créés en Ontario depuis le début de l’année.
Alors que la situation économique mondiale est incertaine, l’Ontario continue d’offrir aux entreprises un environnement solide et stable qui les aide à créer des
emplois en faisant de nouveaux investissements dans toute la province. Faire équipe avec des entreprises locales et donner du soutien aux entreprises sont
deux éléments du plan du gouvernement McGuinty de créer de nouveaux emplois et de maintenir les emplois existants dans la province.
www.fin.gov.on.ca/en/budget/ontariobudgets/2011/index.html
CITATION
« Les travailleurs spécialisés et les entreprises innovantes constituent le fondement de l’économie ontarienne. Notre gouvernement maintiendra sa démarche
proactive en faisant équipe avec les entreprises et l’industrie. Nous ferons des investissements stratégiques pour aider les entreprises à prendre de l’expansion, à
créer des emplois et à contribuer à la croissance de l’Ontario en cette période d’incertitude économique. »

– Brad Duguid, ministre du Développement économique et de l’Innovation

FAITS EN BREF
*                     Depuis octobre 2003, l’Ontario a créé 524 100 nouveaux emplois.

*                     En 2010, la province de l’Ontario figurait au deuxième rang des principales destinations pour les investissements directs étrangers en Amérique
du Nord, après la Californie. La province a attiré au total 127 projets d’investissement direct étranger qui ont créé plus de 11 200 emplois.

*                     En juin, l’Ontario a créé plus d’emplois que le reste du Canada et les États-Unis combinés.

*                     D’après KPMG, l’Ontario dispose d’un avantage de 11,3 % au niveau des coûts par rapport aux États-Unis en matière de recherche-développement.

*                     Par suite des modifications fiscales apportées en Ontario, les impôts sur les investissements des entreprises ont été réduits de moitié, ce qui rend la province plus compétitive et favorise la croissance des entreprises.
POUR EN SAVOIR DAVANTAGE
Consultez le Rapport d’étape 2011
http://www.ontario.ca/fr/initiatives/ProgressReport2011/ONT05_039201.html  de l’Ontario.
Renseignez-vous sur les programmes et services financés par le gouvernement http://www.ontario.ca/fr/business_program/index.htm  destinés aux entreprises
ontariennes.
Visitez le site Web du ministère du Développement économique et de l’Innovation http://www.ontariocanada.com/ontcan/1medt/fr/home_fr.jsp  pour obtenir des
nouvelles détaillées sur l’économie et le commerce, ainsi qu’une trousse destinée
aux entreprises.

Andrew Block, bureau du ministre Duguid, 416 276-0511
Neil Trotter, Direction des communications, 416 325-6716
www.ontario.ca/economie-nouvelles