TORONTO, ON–BMO Financial Group eleased an in-depth report on the long-term global structural shifts accelerated by the COVID-19 pandemic and current economic crisis.
“We’re in the midst of one of the most significant social and economic challenges we’ve ever faced, where we must – now and in the coming months – make every effort to be there for the individuals and businesses who need support,” said Darryl White, Chief Executive Officer, BMO Financial Group. “At the same time, throughout our history, the global economy has overcome many challenges, which inspires confidence in the future. To cross the economic bridge we now find ourselves on, we must be agile and innovate. Sector by sector, industry by industry, we are seeing numerous examples of how new ways of doing business will support the economic recovery. We will emerge from this difficult period stronger.”
“Economies are resilient, and people and businesses can be incredibly resourceful in the face of challenges; don’t underestimate the ability to recover from this tough period,” said Doug Porter, Chief Economist and Managing Director, BMO Financial Group.
The crisis has accelerated and accentuated many trends that were already in place. It has brought the future into the present, rapidly and sometimes harshly accelerating changes that were already in train. There is no doubt that some sectors face long-term challenges. But in classic creative destruction fashion, there will be some sectors that strengthen and step into the gap.
Specifically for Canada, which has long struggled with productivity relative to key peers and lagged on innovation, the changes that have been abruptly foisted on businesses and workers by the shutdowns may be the spark that closes that gap. Changes have been made in the past month that took days or hours which, in “normal” times, may have taken months or years.
The report focuses on some of the developments or industries that could potentially grow above average in the coming years, which could help reinforce a recovery in a different environment. Specifically, they identify supply chain dynamics, remote working, e-commerce (and mobile banking), robotics & AI, industrial real estate, real-time data, e-learning, local tourism, autonomous vehicles, and general preparedness (pre-cautionary savings and redundancies).
The full report can be downloaded at economics.bmo.com.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider – the 8th largest bank, by assets, in North America. With total assets of $880 billion as of January 31, 2020, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.