GCR expects the shut down due to the COVID-19 to have a broad negative impact across the economy, albeit that the severity will differ from sector to sector.
Specifically, due to the practice of social distancing and the prohibition of large crowds, GCR has immediately lowered the sector risk scores for Hospitality, Gaming and Discretionary retail as we expect of a significant decrease in performance over the next three months.
The COVID-19 pandemic has caused an unprecedented disruption to the global economy. On the macro level, supply chains have been severely disrupted, with production facilities initially in China and South East Asia but increasingly across the globe being shut down. Global travel has fallen to minimal levels and even local business meetings are being postponed or conducted electronically.