Emerging Markets: Infrastructure in a Post-COVID World
By Scott Fata
As the world begins to recover from the global COVID-19 pandemic, trade barriers, labor shortages, and now shortages in raw materials continue to be risks to the global supply chain. With many countries now opening again, new trade lanes will become exponentially more important in the global economy.
Expansion of emerging markets had occurred prior to the pandemic, thanks to increased access to capital and more robust automation systems. Despite the struggles over the past 18 months from the contraction of the global economy due to COVID-19, the “global logistics market has reached $5.2 trillion in 2020 and is expected to reach $6.9 trillion USD by 2026,” according to a recent report by IMARC Group.
The impact of the COVID-19 pandemic on annual logistics growth rates within emerging market countries has turned out to be unique across the board. E-commerce increased 13% during 2020, however both the Eurozone and Asian economies contracted by 7% and 2.6% respectively.
Photo courtesy of romanakr.