News & Analysis

Covid-19 Executive Briefing

Understanding the economic impact of the Covid-19 pandemic and the implications for the defence sector

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Latest update: 4 August 2020

Concern over the spread of Covid-19 is rising again but business optimism remains high, according to GlobalData polls

In June, unemployment in the EU27 and Euro Area rose to 7.1% and 7.8% respectively, compared to 6.6% and 7.5% in June 2019


The current 2020 consensus forecast for GDP growth, with the top ten economies trending downwards


The US GDP contracted by 9.5% (quarter on quarter) in Q2 2020, the largest ever decline

- Sector Impact: Aerospace, Defence & Security -

Equity indices show the sector's recovery trajectory

Monthly M&A volumes (completed or announced, indexed to 100 in Jan 2019)

Jobs index, representing adjusted active jobs per company

Quarterly filings sentiment (green = positive, red = negative)

Impact On M&A activity

M&A volumes have fallen off a cliff since January 2020. Extensive lockdown measures in major economies made deal-making particularly difficult.

The M&A market will recover, but GlobalData explects to see fewer deals over $1bn in the short term.

Business priorities have changed and this will impact acquirers' M&A strategy.

Expect more investments in weak business areas highlighted by COVID-19 crisis, such as digitalisation and cybersecurity.

- Sentiment assessment -

The impact of Covid-19 on Business travel 

Business optimism remains high but concern over the spread of Covid-19 rises again

Office workers hope for more flexibility when lockdown is lifted 

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