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With the negative impact of the COVID-19 pandemic spreading the globe, the World Bank expects that the global economy will contract by a staggering 5.2% this year, while Ian Bremmer, President of Eurasia Group, speaks of “the first global economic depression of our lifetimes”. Government rescue measures have already exceeded US$4.5 trillion, and growing by the day, leading to not many people feeling optimistic these days.
However, global headlines make it clear that industries are not being affected equally, that some are finding opportunities, despite the many challenges on the horizon. Among those worst-hit are the airline industry, which is forecasted to incur losses of $250 billion, the hospitality and leisure sector, which in the US alone recorded a 47% loss in jobs, and the brick-and-mortar retail sector, whose losses in the US are estimated to reach $430 billion. There are, however, firms who have been able to use social distancing measures to their advantage. Zoom, for instance, has seen its valuation rise from around $16 billion to $58 billion while sales increased by 169% year-on-year in the three months to April 30, 2020.
Enterprise video communications providers like Zoom are not the only ones who are set to emerge stronger from the status quo. Deloitte found, that with billions worldwide confined to their homes, the financial technology, or fintech, industry is benefiting from increased use of online, especially mobile, channels for viewing and managing finances. Indeed, research Mastercard conducted in the UAE shows that contactless payments in Q1 of this year were 100% higher than during the same quarter in 2019. And it is this ongoing, accelerating shift to cashless payments that makes now