The COVID – 19 pandemics has put the world in an as severe recession as the Financial Crisis of 2008. Astoundingly, household wealth has shown resistance to the ill effects of this pandemic. A report from Credit Suisse analyses who suffered the most during the COVID-19 crisis.
The report states that “The pandemic’s consequences for wealth have manifested themselves in two ways: the impact on individual wealth portfolios and the income shock.”
The report shows that individuals with higher equity holdings, the wealthier sections of the population and people in their late middle age have suffered the most financial losses as the likelihood of such individuals investing in “old economy” sectors, for example, airlines, and bricks and mortar is higher.
As for the female workers, the report finds that they are disproportionately affected. This is because female workers are highly concentrated in businesses and industries like retail, hotels, personal services, and restaurants. Consequently, more women became unemployed as compared to men during the COVID-19 pandemic.
Lastly, the Y-Generation experienced a second major economic shock of their adult lives. These millennials have witnessed unemployment and a lack of stability. Therefore, the report suggests that their prospects in terms of wealth accumulation look pessimistic since there is reduced economic activity, restricted travel opportunities and the end of globalization.