The inevitable global recession caused by the Coronavirus (Covid-19) pandemic will create significant disruption to the automotive, consumer electronics, semiconductor and IT infrastructure businesses worldwide before recovery in 2021, according to a report from Strategy Analytics. Global smartphone sales are set to plummet 23 percent in 2020 ahead of a modest recovery the following year, said the report, adding that the impact on 5G will be considerable with services delayed in Europe and consumer appetite for expensive new 5G devices much less healthy in North America and China.
The researcher added that real GDP is set to fall by 10 to 15 percent in 2020 due to falling consumer spending, with the downturn likely to be felt globally over the next three to four quarters. Globally, automotive sales and the consequent demand for automotive electronics have been in free fall since March, with a potential year on year decline of up to 25 percent for 2020, said the report.
