Nearly three-quarters (73%) of global executives estimate that the COVID-19 pandemic will have a strong impact on the economy, and over half of business leaders (54%) believe that the economic recovery period will extend to 2021, reveals the 22nd edition of the EY Global Capital Confidence Barometer (CCB22).

The research shows that over 52% of respondents have taken measures to change the current businesses configuration, and 41% claim that they will invest in accelerating automation, according to Agerpres.

Also, while half of global business leaders (49%) reported even before the current crisis similar profit margins or lower than two years ago, almost all companies (95%) are expecting to further fall in margins as the global economy slows.

“From a strategic point of view, over a longer period of time, the COVID-19 crisis will bring about a change in the way business is conducted. Supply chains based on major suppliers located in a single country (for example, China) will be rethought. The risks of disruption of supply and of the whole business are too high to offset the lower costs initially incurred. The impact of technology will be a major one, not only to redefine communication in companies, but also to implement processes more agile, more flexible and resilient. Human capital remains the most affected part of this pandemic and, in this regard, it is essential for business leaders and politicians to work together to maintain human health and financial stability,” the EY consultants explained.