The Covid–19 Pandemic broke out at the end 2019 and it had a negative impact on the global financial market. The main events that may occur in the forthcoming time will be:
- Limitation of global chain of deliveries,
- Increasing public funds and aid to boost business activities
- Lower productivity and growth of the real GDP accompanied by a high level of debt
- Level of public spending exceeding 50% of GDP,
- Increasing interest in e-commerce,
- Developing of remote work
With reference to 1)
The limitation of global delivery chains, coupled with demands for an autarky in many countries, has led to a broad reshoring  including plans and incentives to produce goods “at home”. The main sectors affected by this will be the sectors of medical manufacturers (limits of delivery of medical products from China caused some heavy troubles within the process of delivery of such products to local customers during the Pandemic). This will consequently result in an increase of prices for the majority of products in a real sense and not only due to inflation. Governments will rather seek to intensify production processes in the local (domestic) markets without considering the increase of marginal costs of such strategies. It is expected that self-sufficiency will be a priority within the conduct of economic policy. However, such measurements will be expensive for onsumers, may cause financial problems for governments because of increasing financial funds and for labor market marginal costs exceeding the costs of marginal productivity. This will generate a fall of real GDP and limit the actions on the free market where autocratic processes will be predominant. The world has been based on the idea of a free market economy so far being linked and integrated owing to technology and globalization and it will now isolate itself to local markets.2
With reference to 2)
Governments being in recession will spend the bulk of monetary funds justifying this spending through support for the economy which will have a temporary improvement effect only. There is a risk, however, that this will be provided at the expense of low productivity and limitations of private equity resulting finally in the worsening prospects of real GDP. The propagator of the model based on the increase of spending was Keynes who assumed the increase of deficit is given only in conditions of recession as he was aware that within the time of cyclical upswings following the recession, higher public spending will result in the increase of prices and crowding out of expenses in the private sector. The example of Germany from the last couple of months is particularly revealing which is known for its conservative attitude to saving and Germany significantly increased its public spending in relation to GDP (currently 38% GDP).
With reference to 3)
Markets shall seek self-regulation eliminating counter-productive behavior and nonproductive entities from the economy. The Covid-9 crisis has had from its beginning a destructive pattern as economies soaked in debt were extremely sensitive and delicate. Applying the more traditional “Austrian” definition established by Joseph Schumpeter to this, a key function of markets (and their growth) shall be deemed the concept of “creative destruction” meaning the mechanism of constant innovations within products and processes replacing old production units with new. Due to the policy of zero/negative interest rates rescuing everyone thorough the whole period of time, this concept has been given up entirely. As a result, any course of action in favor of developments for new entities being able to relaunch the economy will not be advocated and thus a lower productivity and lower growth of real GDP will be predominant accompanied by a gigantic debt burden.
With reference to 4)
Negative implications for markets (and employment) will follow when the fiscal stimulus once ends. The effect of direct or indirect loans, rescue packages and subsidies in many countries culminated in public spending exceeding 50% GDP. New regulations are expected to be introduced aimed at the “rescue of the economy and workplaces” using taxpayer’s money. The market economy will be put on hold and in the worse-case scenario replaced by state capitalism. This concept cannot succeed as open markets are obliged to explore prices, allocate goods, support innovations and even democracy. As a result of localization, economic chauvinism and state capitalism, the growth, employment, social fabric and markets would suffer significantly. Such an approach as to combating the Covid-19 crisis may lead to a raise on the self”–insufficiency level of many countries but the best solution would be a global overall approach in this respect.
With reference to 5)
According to the consulting company Savills, the Covid-19 Pandemic will accelerate the development of e -commerce in Europe on average by one year and this will be translated into the increase of demands for attractive logistic properties. Prior to the outbreak of the Covid–19 Pandemic it was anticipated that an average share of the e-commerce sector in the entire retail selling in Western Europe should grow by 15.3% until 2022. However, according to predictions by the Centre for Retail Research (CRR), this level will already be reached in 2021. The office for National Statics in the United Kingdom states that within lockdowns the share of e-commerce in the entire retail sales in the UK grew to 33%. Pursuant to analysis, the involvement of e-commerce in Western Europe should stabilize in 2021 at the level of 15.3%. A part of consumers will within time return to traditional shopping but the3 number of consumers currently using e–commerce channels has increased in size and this phenomenon will certainly sustain. Major changes within the e-commerce market might have a positive impact on the real estate market, especially warehouse properties and logistic properties. In Poland, this market has already shown good results in 2020 and this is evidenced by a growth of the share in the e-commerce sector from the level of 6% (first half of 2019) to15% (first half of 2020). Overall data confirms a good condition of this market – regardless of the Pandemic a net requirement increased in the first half of 2020 by 44%, reserves grew by 17% and the vacancy rate was still low increasing by 1.5% only. The Covid-19 Pandemic resulted in a change of the structure of signed rental contracts and the increased popularity of short-term contracts (by 175% every year), however, this tendency seems to have stabilized and after the crisis a return to traditional rental lengths is expected. A limited supply of available rentable space remains a major challenge for tenants and according to predictions the percentage of renegotiating rental contracts will be higher 2021. In addition, due to business uncertainty tenants are more interested in agreeing shorter rental periods and present warehouses do not ensure adequate conditions for serving increased e-commerce trade. Within the current tendency to maximize the use of available rental space, analysts have witnessed an increase
of the share of multi-story warehouses among developing properties. In the last month of 2020 the market of logistics properties became an attractive place for investment despite the Pandemic.
With reference to 6)
The new Covid-19 related reality has shown that remote work may be a long term way of offering work by employees and also accepted by their employers. This is not a temporary adoption into requirements imposed by limitations and restraints but the beginning of a long-term trend pointing to a positive effect of such a solution. It is unlikely that there will be a come back to the previous number of workplaces and mode of working. Employers will increasingly make use of remote work offered to their employees.
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 Steen Jakobsen, Chief Economist of CIO Saxo Bank.
 Reshoring–transfer of production to home country seems to be a very attractive solution. It brings many benefits such as reindustrialization, new workplaces, limitation to interference with the supply chain in the event of any external disruptions such as the virus as well as a balanced environmental management.
 Steen Jakobsen: in the best-case scenario the market economy will be suspended and in the worse-case scenario it will be replaced by state capitalism (see: COVID19 #Autarkia #PomocPubliczna #WsparcieFirm #Kryzys @saxobank)
 The outbreak of the Covid-19 Pandemic showed the dependence of Europe upon Asia, especially on China and India within the scope of production of equipment and medical products (e.g. antibacterial gels, face masks and respirators) as well as active substances being key ingredients of popular medicines. While in the 80s and 90s approximately 60% of all active substances were manufactured in Europe, this situation changed in 2010 and right now over 60% of overall production takes place in China and India as a globalisation effect.
 At the beginning0 production grows more than proportionately and after crossing an optimum point gaining less growth of production than the growth of the variable production factor (work). The following workload will bring increasingly smaller success thus resulting in a diminishing marginal product due to the increasing production factor (work) by unit assuming that other factors remain unchanged. The marginal cost means the increase of total costs caused by production growth per unit (Begg 2003, p. 179).
 https://alebank.pl/prognoza-post-covid-19-deglobalizacja-i-przyspieszenie-smierci-wolnego-rynku-jako-motorugospodarki/?id=333289& catid=625.4
 This country began similar to other EU member states introducing new expenditures, loan guarantees and tax reductions on the supply side to boost national economy
 The term “creative destruction” appears in the work of M. Bakunin, F. Nietzsche and W. Sombart and this term was used by J. Schumpter to describe a transformation process accompanied by a breakthrough discovery .
 Marcus de Minckwitz, Chief Director for Investments in the region EMEA, Savills.
 John Palmer, Director of Investment Team within the sector of warehouse properties and industrial properties by, Savills Polska.
 Research conducted by Research & Grow using the CATI technic (TECHNIQUE?) with regard to small and mediumsized enterprises engaging up to 250 employees – 16 – 18 March 2020. Kerall Research using the technic (TECHNIQUE?) of interviews by phone of micro, small and medium – sized enterprises in April/Mai 2020.