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What Should Marketers Do In A Global Recession?

Thanks to the shockwaves of Covid-19, most global markets are in or hurtling towards, an economic recession. In the face of one of the most trying financial eras for brands and agencies alike, The Drum turns to some analysts and experts to assess the practical steps they can take in a downturn – whether they’re based in Singapore, Seattle or Southbank.

It was early June when the World Bank first issued its prediction that the “swift and massive” shock of Covid-19 would plunge the global economy into a “severe contraction”. It forecast that the global economy would shrink by 5.2% in 2020, representing the deepest recession since WWII.

Fast forward little over one month and numbers statistics are emerging from various markets that support this prognosis.

The UK has officially entered its first recession in 11 years, with the economy shrinking 20.4% compared with the first three months of the year. In the second quarter of this year, the US economy shrank by 9.5%, it was down 32.9% year on year – bigger than any decline on record. Singapore just recorded its worst quarterly performance ever, with the city state’s growth plunging 13.2% year on year, and full-year GDP forecast to contract anywhere between 5 to 7%.

A drop in consumer confidence across Europe means France, Germany and Italy have also also seen their GDP growth slump for two consecutive quarters; all matching what economists consider to be the technical definition of a recession.