Here’s How The Pandemic Will Actually Boost The Economy’s Productivity, According To Goldman Sachs

Here’s How The Pandemic Will Actually Boost The Economy’s Productivity, According To Goldman Sachs

Analysts from Goldman Sachs expect the economy to be more productive over the next few years thanks to three digital trends that have been accelerated by the coronavirus pandemic and are unlikely to fade away in the near- to medium-term.

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Key Facts

The analysts said the first factor is the continued acceleration of e-commerce“”a sector that saw three years' worth of market-share gain in 2020 alone as business restrictions and closures drove consumers online.

The second is the continuation of remote work for about a quarter of the workforce beyond the pandemic“”the analysts said the GDP and productivity could see a boost when the time and money saved by cutting down on commuting, in-person meetings and office spaces is repurposed in other more profitable ways.

The last factor is what Goldman's analysts call "creative destruction““”the closures of unsuccessful and unprofitable businesses“”during the pandemic, though they note that the scale of these closures is much smaller than it was in the aftermath of the 2008 financial crisis.

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