Covid-19 briefing

Download GlobalData’s Covid-19 Executive Briefing report

- ECONOMIC IMPACT -

Latest update: 18 November

Many economists have cut their GDP forecasts. The 2020 consensus forecast for GDP growth is currently negative and many predict a recession.

The unemployment rate in South Africa reached a 17-year high of 30.8% in Q3 2020 as people started looking for jobs following the easing of coronavirus restrictions.

-4.4%

The IMF has revised its 2020 global GDP forecast to -4.4% from an estimate of -4.9% made in June.

$11tn

Over the next two years, the global economy will experience a cumulative loss of approximately $11tn according to GlobalData.

Impact of Covid-19 on equity indices

- SECTOR IMPACT: MEDICAL DEVICES -

Latest update: 02 December

financial impact and reflief

$100bn

The US Congress appropriated $100bn in the Coronavirus Aid, Relief and Economic Security (CARES) Act (PL 116-136) and $75bn through the Paycheck Protection Program and Health Care Enhancement Act (PL 116-139) for healthcare providers.

25.5%

3M announced that its Q3 healthcare sales rose 25.5% year-on-year, likely due to increased demand because of the backlog of procedures during Covid-19 lockdowns.

wearable device market impact

Wearables are proven to be a great source of monitoring, collecting, and predicting Covid-19 symptoms without having a face-to-face appointment with a patient.

Wearables could include a variety of health trackers, including electrocardiogram, skin temperature, and electrodermal activity sensors that allow them to track various health-related statistics in real time.

This viable information can then be sent via the internet to a patient’s primary physician, keeping them informed and able to make accurate decisions about treatment without seeing the patient in person.

Although wearable tech was previously avoided by consumers due to high prices, rapid technological innovation has enabled a decline in prices, making wearables more attractive to average consumers. Therefore, consumers may be more willing to use remote patient care with wearable tech now than prior to the pandemic.

Key Medical device market developments

Cardiovascular devices

All cardiovascular markets were negatively affected by Covid-19, which caused the postponement of non-urgent surgical procedures, contributing to a seven-month decline in sales and procedure volumes.

According to GlobalData’s SKU database, September marked the first month where cardiovascular device sales in the US surpassed revenues achieved in January, and monthly revenue tracking is now trending on a 2.1% growth rate for 2020.

In vitro diagnostics devices

Financial statements for Q3 2020 have been released for many major In vitro diagnostics companies and show strong revenue growth due to Covid-19 testing.

While most non-Covid-19 related diagnostic segments are still down, many companies are reporting only single-digit declines, indicating a recovery of these segments since the pandemic started.

General surgery devices

During Q3 2020, sales for general surgery devices had risen to between 80% and 90% of what was reported during the same time period in 2019. In Q4 2020, GlobalData expects revenue for most general surgery device markets to return to pre-Covid-19 levels.

05/22/2024 21:00:19