RISK FACTORS OF THE CANADIAN ECONOMY AMID COVID-19

Risk Factors

Demand for Products & Services

There has been a huge gap between the demand for products and services and supplies. As Canada came into complete lockdown, people stayed home. Therefore, that is a huge factor that affected the demands of products in the market. Furthermore, it affected the services industry in Canada. It came into the consideration of the provincial government whether or not each industry is essential. The provincial Govt. further restricted the use of services and products imposing a ban until notified. Healthcare and pharmacies are two of the few essential services that were open to people to minimize the impacts.

Nature of the Process of Production

The nature of the production process also changed with time as the COVID-19 showed its impacts on the Canadian economy. The question that arises now is. Do we Need employees to be Close together? Hence, for the production of good and delivering services? However, some operations and processes became automated limiting human use. However, even in Canada, the processes can’t be fully automated irrespective of radical change management strategies.

Worker Availability

Most people in Canada are under self-isolation due to complete lockdown. Hence, the availability of workers in such a scenario is on the low side. People don’t want to be a part of the COVID-19 pandemic, neither they want their families especially children to have such a disease that can be life-taking. The limiting of activities, especially the senior staff has resulted in the understaffing of the voluntary sector. Hence, automatically increasing the risk factor to the Canadian economy.

Proximity to others on the Provision of Good and Services

The level of Proximity to others has decreased, i.e. public contact and on the provision of goods and services. Most cultural, sports and educational or academic activities have been canceled due to the proximity of participants in the delivery of goods and services. This has been the scenario in almost all the provinces and territories in Canada. Several other business activities used for leisure and good time pass are being closed including restaurants and esthetics.

Courtesy: MBE Blog