COVID-19 Cross sector impact-7 January 2022

The virus has now spread to 199 countries and territories, with more than 274 million confirmed cases and more than 5.3 million deaths. Omicron has seen infection rates accelerate, even before the impact of Delta had been fully seen in many markets. The Omicron is rising rapidly in several European countries, including Denmark, Norway, and the UK, and researchers predict that it will soon become the dominant strain in these areas.

The Organization for Economic Co-operation and Development (OECD) had previously warned that policymakers should fast-track COVID-19 vaccinations to curb the spread of Omicron. Stock markets fell in early December as infection rates increased across the globe.

Many countries have imposed new restrictions to deal with surging infection rates. Other measures are potentially more controversial. Italy became the latest European country to mandate vaccinations for certain age groups, targeting the over-50s. Austria has announced a mandatory vaccination plan for those over 14 from February, while Greece has already confirmed a vaccine requirement for over-60s.

Key sector findings discussed in the report include:

• Aerospace: Airbus now expects commercial aerospace to recover to pre-COVID levels between 2023 and 2025, led by single-aisle extra long-range aircraft

• Apparel: The vaccination rollout in western countries was leading to an opening up of society, with more social occasions and a return to the office for some, leading to new incentives to buy more formal clothing, which has helped boost sales of retailers who have a compelling offer

• Banking & payments: The volume and velocity of channel shifts amid the pandemic has focused retail banks on operational agility

• Consumers: Consumers continue to retreat within the home as new COVID-19 variants emerge, further fueling at-home food and beverage consumption

• Technology, media, and telecom: GlobalData has analyzed the impact of COVID-19 on the leading companies

• Travel and tourism: Domestic tourism remains an area of intense focus and has led to significant price surges in some markets