Economic Impact on Regional Businesses slide image

Economic Impact on Regional Businesses

Key Findings • Almost two thirds of firms turned to digital solutions for sales, marketing, and payment methods to adapt to the new normal. A sizable share of firms also invested in digital solutions (23 percent) or repackaged their product mix (40 percent). Firms expressed a high degree of uncertainty and general pessimism about their operations, sales and employees for the next three months. Such lack of confidence will likely limit additional investment and employment, restraining firms' growth. These suggest that business activities are expected to stay subdued for an extended period. • Firms say the most useful form of government support are those that would improve their liquidity, such as cash transfers, subsidized interest rates, deferral of loan, rent, or utility payments, and tax exemptions or reductions. About 1 out of 5 firms received support from the national or local government, mainly in the form of cash transfers directly paid to employees. 3
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