The COVID-19 Crisis and the Economic Impact

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On April 28th,


McKinsey & Company's Global Managing Partner, Kevin Sneader appeared on CNBC April 28th to discuss how his firm is advising multiple governors on when and how to reopen their states.

He said that the decision hinges on one question: how do you reconcile the saving of lives with the safeguarding of livelihood? 

There's no easy answer. 

70% of the US workforce is unable to work from home, states need to consider how to make sure there is enough PPE, testing and contact-tracing needs to be in place to be confident that once they reopen, they won't have to shut down again.

To learn more about the San Diego real estate market reach out to us today!

How This Could Unfold


A recent survey of over 2,000 global executives showed that many expect the recovery to look like one of the scenarios shaded in blue below (A1–A4) which lead to a V- or U-shaped recovery. In each of these, the COVID-19 spread is eventually controlled, and catastrophic structural economic damage is avoided. 

Almost one third of these leaders anticipate a muted world recovery where US GDP could drop 35-40% in Q2 of 2020 and won't return to pre-crisis levels until Q1 of 2023 (A1). A slightly more optimistic outlook was the second most anticipated scenario, reflecting virus containment by mid-Q2 of 2020 with an economic rebound following Q2 2020 (A3). [Source: McKinsey]

Which Sectors are being hit the hardest?


1.    Commercial Aerospace May take years to recover from production and supply chain shortages

2.   Consumer Air & Travel Domestic recovery is likely to recover faster than international travel


3.   Oil & Gas Oil price decline driven by short-term demand impact and OPEC+ decision to increase supply


4.   Insurance Carriers Reduced interest rates and investment performance impacting returns


5.    Automotive Trade tensions and declining sales amplified by acute decline in global demand


Posted by

Joy BenderJoy Bender is the co-founder/owner of LuxurySoCalRealty with Compass. She has a passion for helping clients discover San Diego's coastal lifestyle. Specializing in second home buyers and relocation families moving to San Diego.  Joy will guide you to San Diego's finest homes.  

Comments (1)

The Woodland Team of Texas
The Woodland Companies - Austin, TX
Land Specialists

Thanks for sharing the information, I hope you sell many of these homes. 


May 06, 2020 11:42 PM