Corona Market Update: Market overview and Forecast for Q3, 2022, by Kamesha Keesee.

Corona Market Update:

Market overview and forecast for Q3, 2022

By Kamesha Keesee

Covid 19 outbreak brought many businesses to a standstill, and two years later, the world is struggling to get back the economy to where it was. Both buyers and sellers have faced various challenges and adopted some methods that are now the new norm not to change any time soon.

IS THE MARKET CONDITIONS A BUYER’S OR A SELLER’S MARKET?

As indicated earlier, buyers and sellers have been affected by the pandemic. For instance, during the last two years, most people have shifted to sourcing goods and services online to protect against the virus. The new norm is here to stay as people prefer it for safety and privacy. Buyers and sellers prefer digital self-serve and remote human engagements over face-to-face interactions. The buyer’s online interaction enables them to place orders and view details of products. More so they also have the benefit of fast delivery. On the sellers, they can put their market online and advertise to a large group of potential buyers. Generally, the market is a buyer one because most consumers have capital, but they are faced with a scarcity of commodities. The reason is that most business people are faced with high inventory due to Covid 19.

Some market statistics include inventory levels, sales activity, and the number of days properties stay on the market.

As a result of economic recovery, 2021 and

2022 have recorded business growth, benefiting entrepreneurs and workers. The rise in business evident is due to the savings most people put in during lockdown. Businesses continue to thrive and add more workers as sales activities increase daily. Businesses such as hotels and restaurants are trying to reopen as tourism is slowly getting back to normal. Economic growth comes with challenges such as low inventory levels, and not being taken care of will lead to running out of stock, especially with large and complex businesses.

APPRECIATION DATA

In the last year, commodities prices have increased due to the Corona crisis, which might continue next year. For instance, the GDP of many countries dropped in 2022 compared to the previous years. For example, the United States drooped from 5.7 in 2021 to 3.3 in 2022. Also, the global fuel price went up, adversely affecting most parts of the world. Skyrocketing prices are also with many other commodities in the market. In the real estate sector, there are high demands o houses making housing expensive. The economic recovery is also said to face growing imbalances and risks. An ineffective vaccination among the people now that new variants are emerging among the reasons leading to poor a condition. Appreciation data in Q3 2022 remain low due to labor shortage and scarcity of raw materials in the market. Variant s such as Omicron also hinder the growth of the market greatly

FORECAST FOR Q3,2022.

The stock market in Q3 2022 is deemed at 31255 as opposed to Q2 2022 being 32067. Currency and government bonds will increase in Q3. Other sectors forecast to be higher in 2022 are GDP growth rate, GDP annual growth rate, Non-farm payrolls, inflation rates, and the interest rate. It shows that there are possibilities of good economic growth in the third quarter of 2022 and, consequently, in the following years. However, the Ukraine war continues to affect the high energy cost in different parts of the world. The war has resulted in an expensive humanitarian crisis that peaceful resolutions must meet. Consequently, annual economic growth has also come up due to the war. It decreases from 6.1 % in 2021 to 3.6 % in 2022. Furthermore, this value is estimated to decline to 3.3 percent in the year’s third quarter.

In the global economic prospects report, the World Bank declared a potential slow down of economic growth. Global growth is said to decrease from 5.5 percent in 2021 to 4.1 percent in the Global growth. Reasons fostering this are; debt, inflammation, and gender inequality which is mainly common in developing countries.

COMMENTARY.

As seen earlier Covid 19 effects may continue to affect the economy even after the disease is gone. The care there is thus a need to come up with policies by the government to help countries get back to their economic place as soon as possible. Some problems came up as a result of the Covid 19 variant, and the effects were dire mainly because of ignorance as it mostly affected those that did not have the vaccine. Thus, people must have the vaccine and more to safeguard themselves against future uncertainties.

Q3 and generally the whole of 2022 has experienced an economic decline in terms of economic growth. Business people and investors are thus encouraged to have a good inventory level to prevent a shortage of goods in the marketplace. They will eventually lower the prices of commodities in the market. Covid 19 pandemic also served to teach most countries to prepare for a potential future crisis by having proper strategies.