Sectors2

SECTORS

Agriculture / Forestry

Agriculture is a major part of the European and Asian economies. The agricultural industry in Europe provides over 44 million jobs. France is currently leading the production of agriculture and out of all the products that the EU produces, their most prominent product is wheat and corn. In Asia, the most produced product is rice and cotton. India, China, and Pakistan combined produced 16 million hectares of cotton. However, agriculture does contribute to the ongoing issue of climate change such as CO2 emissions and deforestation.

The Agricultural Sector in the EU currently has a program called the Common Agriculture Policy (CAP) which gives a vast number of subsidies to farmers to promote cheaper agricultural products. This policy has received criticism for having negative consequences to developing countries’ agriculture sector, such as developing states in Southeast Asia, since the policy makes otherwise cheaper products in developing countries more expensive than European agriculture.  

EUROPE
Since the onset of the COVID-19 pandemic, the Agriculture Sector has shown considerable resilience due to its highly mechanized nature. The supply side has been resilient due to the establishment of various green lanes for logistical aid across Europe. However certain agriculture subsectors, such as the meat and dairy industry, have suffered due to severe labor shortages since the border closures as well as various local Covid outbreaks at the production facilities. The agriculture sector heavily depends on migrant labor, and the border closures put the labor shortage at approximately 1 million migrant laborers. The outlook for the agricultural sector in the medium to long run hinges on a gradual green recovery as per the ratified free trade agreements as of September 2020. As such, the cultivated area is predicted to reduce to increased technological efficacy resulting in a fall in acreage requirement. Organic production by 2030 is projected to hold a 12% share in the total agricultural output of the EU. The decline in the agricultural workforce is also estimated to reduce by 1% per annum by virtue of structural and technological changes. The farm income is expected to increase due to an escalation in output volume.

ASIA
For highly perishable goods such as fruits and vegetables, the impact of the disruption of supply chains by COVID-19 was particularly acute. Nations have taken many short-term measures to reduce the negative impacts on the supply chains such as financial or fiscal support, ease in labor transportation related to agriculture and fisheries for the first quarter of 2020 an estimated 3.11% i.e., 17 million tons equivalent fall was seen in agricultural production of Southeast Asia by nearly 100 million people by the agricultural labor displacement. Immediate support shall be provided to small farmers and their access to the markets to cushion the blow of the pandemic especially to farmers in rural areas many governments in the region have extended credit conditions and relaxed the conditions of the repayment of Agribusiness loans to provide liquid to do the market. Many fiscal measures in Asian nations in the wake of the pandemic have been oriented towards debt restructuring whilst keeping short-term working capital for farmers in mind.

Entertainment Tourism

There was a vibrant tourist economy on the Eurasia continent. The EU had a loose travel policy between countries which makes it easier for the European continent to promote its tourism industry, as it is easier for people to travel between countries. Tourism has been a significant portion of economic development. Tourism has become a significant percentage of states’ GDP, such as with India, and has provided many jobs to local citizens in these countries. There has been an increase to develop the cities to attract tourists to experience their culture. Industrializing states that have relied on tourism have worked to restructure and develop their infrastructures, such as developing airport infrastructure and travel infrastructure around the state. 

The Entertainment industry has really blossomed in China, as it has embraced Hollywood and the movies and created a large market for films. It has replaced Japan in the entertainment field, whereas Korean has become successful in the last several years with the K-Pop music scene… Parasite also became the first South Korean film to win the 2020 Oscar for Best Picture at the Academy Awards.

EUROPE
By August 2020 the earnings from the global tourism sector declined by 730 billion USD and this reduction proved to be nearly eight times larger than the income loss during the 2009 financial crisis. The EU tourism industry, employing around 13 million people, is projected to be losing around €1 billion in revenue per month because of the outbreak of COVID-19. In the first ten months of 2020 the international arrivals into European nations reduced by 68%. Additionally, women make up 54% of the tourism workforce, and the youth and workers in the informal economy are among the most at-risk categories. Cyprus, Greece, and Malta among the other EU nations have seen a 70% decrease whereas the Netherlands and Denmark which is the region of 30% in terms of tourism. The overnight stays by foreign tourists in the EU dropped by 68% in 2020 while those by domestic ones dropped by 38% according to the euro stat. The future of European tourism depends on the possibility that citizens would be able to move across the borders freely. The European Commission has proposed a phase-out of a flexible approach with immense emphasis on communication between member states with regards to opening up the borders. 
 
ASIA
Across South Asia alone nearly 50 million travel and tourism jobs have been negatively affected due to COVID-19. Women and workers from rural communities, especially within the informal sector, are amongst the most vulnerable within the travel and tourism sector alone in Southeast Asia, where losses of over 50 billion USD are expected. A respite for the tourism sector came in the form of travel bubbles and certain green corridors with partner nations. In many cases these travel bubbles also included travel for leisure purposes. Even though such measures are projected to cushion the blow at least short term of the pandemic, such bubbles are at the behest of the success of rapid vaccination campaigns. The Central Asia Regional Economic Cooperation (CAREC) Program is also in the process of finalizing and adopting a regional tourism strategy which would account for COVID-19 impacts and outline the priorities and guidelines for the extension of such travel bubbles and green corridors.

Energy / Mining

Much of the Eurasian continent still uses fossil fuel energy. Most industrializing countries use coal since it is a cheaper form of energy use and most of the EU states use oil. There has been a push to use nuclear energy as an alternative of fossil fuels, especially in industrializing states on the Eurasian continent, however, nuclear energy also has many long-term consequences and flaws for health and the environment as well. 

As there has been growing concern about climate change, Eurasian countries have taken action to try to reduce their fossil fuel emissions. Industrializing countries in Asia such as India and China have taken large measures to reduce their energy emissions, while most developed states in Europe have not met their energy reduction promise. This has become a conflict between the Global North and the Global South, as there are current debates about historical inequity, development, and capacity inequality with the topic of energy reduction.

EUROPE
The global energy demand declined by nearly 3.8% as per the IEA's analysis in the first quarter of 2020. extended lockdowns and curbs on economic activity could potentially decrease the energy demand by an additional 6%. Similar changes in CO2 emissions can be expected, by a decline of nearly 8% which Europe has not seen since the late 1950s. The fall in European gas prices in the first quarters of 2020 augmented the switch from coal to gas in the power sector. A very unifying part is provided by the European Green Deal, which also acts as a unifying strategy and a road towards carbon neutrality. Such a result however depends upon strong backing of the EU Member States and the European Commission. Rising infections starting January 2021, the IEA forecast sees demand recover in the oil sector by 5.5 million barrels per day compared to the 8.8-million-barrel decline in 2020. on the investment side, especially those in low carbon technologies grew by nearly 9% two $501 billion in 2020. European countries saw a sharp increase in low carbon investment which was at 67%. The investment of the European Union in that regard stands at 166.2 billion which surpasses that of the US and China in low carbon investments.

ASIA
Prior to the pandemic, Southeast Asia’s electricity demand was among the fastest growing in the world which was averaging at about 6% per annum as per an IEA report, 2019. Rapid urbanization and the increasing city population, rising incomes, and extensive electrification goals of such nations are a reason for this. By 2035, the electricity capacity in Southeast Asia is set to double, requiring an investment of $500 billion in generation assets alone as per the IEA. Renewables on the other hand have been resilient as renewable generation has increased by 3% due to a wave of projects that began before the pandemic. renewables are currently showing resilience to pandemic lockdown measures. Generation by renewables has increased by nearly 3% worldwide, largely due to a wave of projects that began before the pandemic. ASEAN nations have laid out a comprehensive five-year sustainability plan under the ASEAN plan for action for energy corporations from 2021 to 2025. The goal is to improve the capacity for renewable energy production in the countries most affected by the COVID-19. According to the outlines, the target for renewable energy share would be 23%, and an increase of 35% in ASEAN installed power capacity by 2025. This would call for an approximate 35GW-40GW of renewable energy volume to be added by the year 2025.

Defense / Security

Many European countries are allied together with the United States in NATO. NATO was started during the Cold War as a defense against the Soviet Union. After the Cold War, the NATO alliance continued with an assurance of collective defense between each other. The states came together to provide aid and defense for the United States after the attack of 9/11 and sent troops to Afghanistan. However, currently, NATO is under scrutiny from the current President Trump, as he believes that NATO states are not fulfilling their obligations as much as the United States and sees it as a burden for the United States.

States in Asia, such as South Korea, Japan, and India, look to the United States as a defense against threats of China and North Korea. Japan is starting to expand its military, as it has relied on the United States for defense capabilities, though there are current discussions of removing Article 9, the article in the Japanese constitution that forbids Japan from having a fully developed military. The United States also has a strategic alliance with India to counter China’s current rise. The U.S has sent military aid to India and India has seen the United States as a way to secure its state and develop military capabilities.

EUROPE
The bulk of European nations have come to the realization that their supply chains are heavily dependent on Chinese products, and this supply dependability is not only restricted to PPE equipment but in many other areas of production as well. The common security and defense policy (CSDP) was directly impacted by the COVID-19 pandemic and the various shortfalls, especially with regards to strategic airlifts, secure communications, and command and control issues were brought out in the CSDP. In terms of defense spending, EU nations have come under stress due to the pandemic but due to vaccine distribution, this may escape the 2008 2009 financial crisis defense cuts. the vulnerability of supply chains and the infrastructural weaknesses were brought out by the pandemic. such problems were even more acute in the EU member states with severe socio-economic imbalances and governance discrepancies.

ASIA
One of the most visible effects of the pandemic on the defense sector in Asia has been the supply-side shocks nations that are dependent on supply chains located in other countries have been the immediate victims of the above-mentioned supply chain shocks. Certain business development measures defense events and various contracts and the inability to fulfill them have led to a flat line growth due to the various supply chain blockages caused by the lockdowns. to weather the future impact of the pandemic certain contingency measures are recommended, the bulk of which deal with material substitution and risk assessment. one could argue that minimum inventory in the sector could go a long way to help with cost control. Deal with short-term shocks, increase investment in automation (technological intervention), and unmanned subsystem delivery, can help with the short-term challenges and lay a strategic part to deal with the long-term effects of the pandemic.

Financials / Investments

There is a current heavy investment in growing Asian countries, such as China. China is a growing superpower with a growing economy, and many companies have seen it as a place to invest to grow their profit. A lot of this investment in Asian countries such as China, India, and Vietnam have helped grow and develop their economies to compete on a dominant scale. China is seeing itself invest in other states, as it is creating a large infrastructure project called the One Belt One Road Initiative. This initiative is to provide loans to create better infrastructure in developing countries, however, there are concerns as many of these states could fall under a debt trap and be burdened by China.

The European Union had seen a rise in foreign direct investment and many companies set in EU are foreign owned in industries such as in oil and electronics. Their largest partners are with the United States, Canada, China, and India. The EU has seen a large contribution from China to its foreign direct investment, however, this can also be seen as China to promote more of their technology and companies as much of this investment has resulted in mergers and acquisitions of European companies by Chinese businesses. The current issue of the coronavirus has thrown a huge shadow on trade and investment with China and other nations in Eurasia.

EUROPE
There has been resilience on the part of European banks with regards to the COVID-19 pandemic the public policy measures which have been well-coordinated between the member states combined with the ongoing strategy of the banks to deal with the nonperforming loans has cushioned the blow of the pandemic. In 2020 the non-performing loans ratio of European banks fell from 3.1% to 2.5% by the end of March 2021. In terms of the economic outlook, the recovery for the banking system seems firm. The decrease in the cost risk of European banks from 70 Bps (basis points) in 2020 to 64 Bps in 2021 illustrates the recovery. One should look cautiously at the low-interest rates that have been forcing interested parties to look for other areas with increasing yield, also the easy access to credit that is available now would only be good up until the point it becomes excessive and contributes to a credit risk environment. 
 
ASIA
According to IBM's COVID-19 future business study, northwards 59% of organizations state that the pandemic has acted as a catalyst for digital transformation and will lead to permanent changes in consumer behavior. In the Asian Pacific region most firms found profitability under severe stress. This added to the fierce competition from fintech and put pressure on the financial institutions. Due to their ability in moving lithely, fintech offers the financial sector a more technologically advanced way of dealing with the needs of the consumer. The banking sector has also suffered negatively due to the dip in cash transactions, the saving grace has been a quick and short turnaround.

Healthcare/
Pharmaceutical

Most European countries have free universal healthcare and most countries in Asia have either free and universal healthcare or free healthcare. Some European countries have a two-tier system and have the option to receive public healthcare or use their private insurance as an option, such as Austria, France, and Germany. Other European countries have full universal free healthcare, such as Sweden, Finland, Norway, and Iceland. 

Some countries in Asia require their citizens to have healthcare such as Japan. Countries such as India have free healthcare services, but these services are to help those below the poverty line. There has been a movement to reform the current system to provide universal healthcare since most Indians have to pay out of pocket. China has both public and private insurance, however, public healthcare does not cover a lot of medical costs.

The pharmaceutical industry in the European Union has been growing a lot in the past few years. There are major firms such as Bayer and Boehringer, and these companies provide Europeans with many jobs around the continent. One of the leading industries in China is the pharmaceutical industry, as it is rising in research and manufacturing.

EUROPE
Besides the short dip during the second quarter, the pharmaceutical and the digital sectors have been the least impacted by the pandemic certain aspects of the healthcare sector such as non-essential surgeries and the demand for treatments that are related to such procedures have experienced a drop. Such a slump has affected the general pharmaceutical sector but not to a great degree. The retail volume of pharmaceutical products experienced an uptick in the first quarters of 2021 as the demand-supply ratio in the retail volume increased. Due to the lockdown measures, pharmaceutical trade fell by approximately 12% in April 2020, and the initial supply chain discrepancies due to the closed factories—as well as the lockdowns that shut down the borders within the EU—led to a central problem of shortage of pharmaceuticals and various health care equipment. Another issue faced within Europe was the stockpiling of medical equipment by certain wealthy member states that led to distribution issues within the EU. Certain subsectors of the pharmaceutical sector such as the production of computers and tablets and medical devices specifically for healthcare practitioners have been affected the least through the initial quarters of 2020 and as the pandemic progresses their production received priority. To address the discrepancies and supply chain issues, the 5.1 billion EU for health program was agreed upon in December of 2020 and aimed to assure the availability of medications including the vaccination for COVID-19. such funds we're also not limited to pharmaceutical research and provided incentives for domestic manufacturing. 

ASIA
The pandemic led to increased demand for healthcare and healthcare-related services, which in turn led to a certain level of job creation within the sector. However, one issue that stood out that impacted the pharmaceutical and healthcare sector within Asia was the strong negative relationship between public health financing and out-of-pocket payments in countries where the public spending on health was below 3% of GDP. India and Pakistan serve as prime examples of this trend. Other sources of funding include private health insurance, but this accounts for a very small share in health financing in these countries. The pandemic has laid importance on certain aspects of universal health insurance in these nations and public financing for it. The failure of health care systems and the shortage of pharmaceuticals has geared policy towards a shift towards more accountability towards the usage of Resources within this sector. CDM owes or contracts development and manufacturing organizations are companies that aid other organizations in the pharmaceutical sector to provide services in the fields of drug manufacturing and drug development. The pharmaceutical contract manufacturing market is projected to grow at 7.6% annually in the Asian Pacific region. The total market cap of the market is estimated to be over 489 billion over the 2020- 2030 period. Due to the increasing dependence on contract manufacturing organizations.

Manufacturing

Manufacturing in the Western world has been in a steady decline as the world has become more globalized. Many leading industrial countries such as France and Germany have seen a decline in their manufacturing industry. With the decline in manufacturing jobs in Europe, there has been a rapid increase in manufacturing jobs all over the Asian continent. This is due to the low cost of labor and production in these countries that make it more profitable for international firms to manufacture in countries such as China, Vietnam, and India. China received the biggest benefit in this, as its manufacturing has sharply increased and helped grow its economy. Countries such as India have had a steady increase in manufacturing jobs, and as the country develops its economic policies, it is becoming more attractive to international firms.

Many citizens in Western countries have encouraged this increase in globalization, however, others have felt threatened by its rise. This is due to a loss in low-skilled jobs available as manufacturing jobs decrease in these Western countries. Western countries have seen Asian countries’ rise as an opportunity for cooperation, however, countries such as the United States have also seen this as threat to their economic presence, even resulting in a trade war. The current coronavirus is disrupting many global supply chains in the manufacturing sector. 

EUROPE
Short term supply shortages manufacturing companies had been affected in the first two quarters of 2020 by Q3 of 2020 such industries saw mild recovery. In the EU 27, a sharp decrease in March 2020 of approximately 11% to 20% YoY was seen as a result of the lockdowns, from May to August. Saw the 13% change for the better from the previous two quarters. The second lockdown did too , the new credit lines that had been approved by the Central Bank of Europe and policy measures aiding industries helped to cushion the blow to the manufacturing industry. On the automotive front, 2.6 million people are employed within the EU which represents 8.5% of all manufacturing jobs. The industry also accounted for 2.5% of the total EU GDP in 2019. In terms of aerospace manufacturing, the decrease in 2020 was approximately 43% primarily due to the large-scale cancellation of Airbus orders. The blame for this can't be put on the supply chain blockage is that the lockdowns brought with them. relief to the sector has come on the shoulders of artificial intelligence, data analytics, cloud computing and 3D printing since such technology has been able to mitigate against the lockdown disruptions and worked towards creating business resilience. AI specifically has the potential to revolutionize the manufacturing process since it automates large amounts of industrial processes thus reducing contact.

ASIA
Due to the COVID-19 pandemic, the Asian Pacific supply chains have experienced great amounts of stress, the distribution and production networks have been interrupted, factories in the regions have constantly gone through cycles of openings and closings, and major transport linkages severed for containment reasons. the inability to access essential raw materials machine parts the manufacturing capacity of the region has gone through a certain slump. looking into the future the manufacturers in the region are working towards adopting the industry 4.0 operating procedure. This will enable them to become more agile and deal with production and distribution issues, especially shortfalls if an event like this were ever to take place again in the future.  
The purchasing manager’s index, the BMI of China rose to 50.1 in the later quarters of 2020 from February’s low of 40.3. A PMI of 50 separates contraction from growth.
South Korea’s PMI plunged to 44.2, its lowest since January 2009 the index was 48.7 in February 2020. Japan’s PMI fell to an adjusted 44.8 from that of 47.8 in February, its lowest since April 2009. His government has been called on to provide a stimulus of approximately 553 billion USD to deal with the contraction in the manufacturing industry. Looking towards the future the Asian Pacific smart manufacturing market is expected to grow at a rate of 7.57% from 2021 to 2026.

Real Estate

Property prices around the European Union have sharply increased, such as in Germany and the United Kingdom. Due to the high standard of living and a rise in tourism around the continent, there has been a sharp rise in property. Lisbon, Zagreb, and Plovdiv have been emerging into the real estate market. 

Countries in Asia have invested heavily in their real estate and property to increase their tourism sector. India, for instance, has the second-largest real estate industry, right behind the United States. This investment has improved its infrastructure and urban aesthetic. Cities such a Singapore have also seen a continual rise in their market, as they have been consistently selling new property and has been a place of high interest for investors. 

EUROPE
There was a visible increase in mortgage debt, and it became visible after the acceleration in house prices became more widespread across the European Union. The forecasts point towards the housing markets softening and correcting in the majority of EU member states however the fall in labor incomes can be attributed to the fall in the housing market prices. such a fall in prices is also expected to take place in countries that are showing clear evidence of overvaluation. On a more general note, tenants, either in the private markets or the subsidized ones, are more affected by the owners with the changes in the mortgage rate, in cities the housing cost overburden rate was 11.9% compared to rural areas at 6.8%.
 
ASIA
The second quarter of 2020 has a deeper impact on the real estate sector in the Asia Pacific region. in 2020, there was a 32% approximate YoY decline in real estate investment. The use of a more digitized platform is being used to cushion the impact of the cover-19 pandemics to the respective industry. data from JLL shows that Hong Kong and Singapore are the worst performers where the investment in the real estate sector was down 268 and 65% respectively in the second quarter of 2020 compared to the previous year. This decrease was followed by Australia and South Korea with 58% and 48% degrees respectively with China decreasing by 15% and Japan by 20% in terms of investment in the real estate sector. In terms of sales specifically, Tokyo suffered a 55% drop in the second quarter of 2020. looking towards the future for recovery, the burden would be placed on cost-saving measures and capital expenditure constraints. In certain circumstances, especially those regarding the higher vacancy, the tenants would have the upper hand in negotiations. It is yet to be seen how the vaccine distribution pans out, and the rules organizations impose as coming back to the office spaces into the cities for their staff. If the above-mentioned scenario does take place then the investment in office spaces would see recovery but it would take a decent amount of time for them to reach pre 2020 levels.

Retail

The retail industry in the European Union is one of the highest and most important industry in many European countries. Many city residences and economies rely on their retail sector attracting tourists. The EU announced its Single Market Strategy to look at restrictions in the retail sector and identify the options to better the retail market in the EU. 

China’s retail sector has been rising heavily and will overtake the United States as the biggest retail market in the world. There has been a formative new middle class in China that has been able to spend more money on goods in the retail sector and has allowed for growth in it. Place in Asia, such as India also attracts tourists for their street markets and cheap goods.

The retail industry in shopping malls and stores has seen a decline as there has been an increased interest in online shopping due to Amazon, and other options for online stores. This has caused certain malls, stores, and areas to see a sharp decline in business, which has resulted in the EU to attempt to strengthen their retail industry. 

EUROPE
The retail sector has borne the brunt they make by total trade volume in the first quarter of 2020 decreasing by 9.2%. in January of 2021 due to an increasing number of COVID cases and the closing of non-essential shops within the EU retail trade dropped by an additional 4.3%. In the euro area, the monthly degrees improved marginally in March and April of 2021 where the degree was 3.1%. On an annual basis in 2021 the retail trade volume was 22.4% in the EU. Additionally, in 2020 the annual average fell by 0.8% and the GDP decreased by 6.2%, according to Eurostat. Looking towards the future, E-Commerce is pegged to grow to 569.2 billion in 2025, due to a large shift to a digital platform that the pandemic has acted as a catalyst for.

ASIA
Accounting for over 50% of the world's population, the Asia Pacific has the largest retail market in the world. CAGR is 16% in Indonesia and 14% for both China and Vietnam. Disposable incomes in Asian nations have witnessed a steady increase over the last decade, however, the pandemic put a dent in the retail sector due to supply chain shocks as a result of the lockdowns. Over the course of 2020 in Southeast Asia alone, the number of Internet users has gone up by 10% and the total number of Internet users in the area is about 60%. e-commerce expected to play a huge role in the retail sector in the coming year due to the increasing dependability of artificial intelligence. The Chinese population has seen an increase in disposable incomes and the retail market has evolved eight one of the largest worldwide. On the policy front, many Southeast Asian nations have opened up foreign direct investment for foreign brand retail. India alone has made provisions for up to 100%. such measures besides gearing up competition in the retail market are a clear sign that the particular sector in the region is to mature rapidly in the near future.

Technology

New technology has been the center of business in the past few years as many firms such as Apple, Tesla, and Google have been inventing new technology and products. Cities in Europe have been attempting to compete with Silicon Valley, such as London, Paris, and Berlin which are key cities in Europe that have seen a rise in digital investment. 

China has been increasing its science and technology research, such as developing advanced military, computer, artificial intelligence technology. They also are planning to adopt 5G nationwide. This increase in investment is an attempt to compete internationally with other countries, especially the United States, to secure their place in the international community.

Artificial intelligence is rapidly being developed around the world and has seen incredible advancements. However, the rise in AI has also brought concerns to people around the world, as AI has the potential to eradicate several jobs. For instance, Tesla’s development of self-driving cars has brought the concern of many taxi drivers and truck drivers around the world, as their job and livelihood will be eradicated due to this new technology. 

EUROPE
The penetration in the information and communication sectors due to digital adoption has increased from 81% to 95% of the European Union by Q4 of 2020. certain negative impacts were evident within the digital sector in particular the disruption of supply chains during lockdowns which slowed down production or stopped it in many nations. The demand for hardware suffers in certain sectors especially automobile and hospitality since the ability to do business face to face was hampered by the lockdown. This slump translated into lower demand for his manufacturing products and services. The sub-sector that benefited from the crisis was that of personal computers tablets which rose by approximately 4.6% year on year by Q4 2020. Remote collaboration was the main focus of the software market due to the imposition of work from home policies, the market growth of 4% during 2020. network equipment and the sub-sectors associated with them took a hard hit due to the disruption of supply chains and contracted by approximately 5% during 2020. Most of the recovery in the tech sector do the pre-pandemic levels is expected to be complete by the end of 2022 the recovery can be described as a V shape i.e., temporary moral decrease since the initial drop in spending in the industry was offset by the major needs demanded by the work from the horrible shift.

ASIA
Revenues of digital platforms reached 3.8 trillion globally in 2019. Asia and Pacific accounted for approximately 48% of the total share standing at 1.8 trillion, this is equivalent to 6% of the region's gross domestic product. A subsector such as e-commerce and its privileged position to deal with the pandemic has led to estimates of a 20% increase in the size of the digital sector with an average of 4.3 trillion yearly from 2021 to 2025. as mentioned above approximately 48% of that revenue is to come from Asia and the Pacific. On the profitability spectrum, the Asia and Pacific woodfree has an economic benefit of approximately 1.7 trillion per annum which translates to about 8.6 trillion over five years up until the 2025 forecast. In terms of regional trade, the expected increase is approximately $1 trillion for Adam over the next five years. according to the e-Conomy SEA report conjointly compiled by Google Singapore’s Temasek and the venture capital firm Bain and Co focusing on the six largest economies of Southeast Asia namely Indonesia Malaysia Singapore Thailand Philippines and Vietnam put a fast pace uptick on the region’s adoption of sophisticated digital platforms and related technologies. Approximately 40 million people from these Six Nations are expected to take up subscriptions in 2020 bringing the total Internet users from the area to approximately 400 million up from approximately 250 million in 2015. By 2025, given that the current trends continue, the region’s Internet economy is expected to reach a valuation of 300 billion USD.
 

Telecommunications

The internet has changed communication around the international community forever, as it has provided instant communication of people from two parts of the globe. The new fast-paced nature of telecommunications has allowed for faster news coverage to be communicated. The introduction of the smartphone advanced telecommunications as it provided a small computer to everybody. 

5G is the newest addition to wireless technology that will provide faster speed in uploads and searches for internet usage. China is attempting to launch this new technology nationwide as a way to compete with the United States. Most telecommunications are dominated by American companies such as Verizon or AT&T, however, China Mobile is a competing telecommunication industry. Other top telecommunications are Vodafone, Nippon, and Softbank. In many countries, the telecommunication industry is a monopoly or oligopoly. 

EUROPE
Working from home, students learning online, and a jump in telecommuting via video led to major changes in the telecommunications industry. In many ways, the industry became vital for the survival of most businesses since face-to-face meetings were nearly impossible. The sector was put to test, however, due to the major traffic that was going through and this was combined by difficult working circumstances. From broadband to mobile data operators have benefited from the massive surge in online traffic, as a result, telecommunications is one of the few sectors that has done well in the pandemic. The short-term spikes have led to the financial positions and cash flows of many telecommunications giants’ benefits. According to Accenture’s latest economic modeling analysis, the impact of 5G on the economy of Europe is projected to increase €2 trillion in incremental growth output between 2021 to 2025. Additionally, 5G is estimated to add 1 trillion euros to the European GDP. in the job sphere, approximately 20 million jobs are estimated to be created across all sectors of the economy at the behest of the 5G technology.

 ASIA
As per the GSMA may in 2020 approximately 7.9 billion mobile connections were active and these were projected to increase to 8.6 billion by 2025, as the industry suffered a hit by the COVID-19 pandemic cost-cutting has become a priority. This made more complicated the development and the distribution of the new 5G technology. At the end of 2019, approximately 2/3 of the population globally added mobile subscriptions. In the first quarter of 2020 with the beginning of the lockdowns, the number of connections increased approximately to 7.9 billion compared to 5.2 billion at the end of 2019. At the end of 2019, two-thirds of the global population was subscribed to mobile services. Influenced by lockdowns imposed worldwide in Q1 2020, the number of mobile connections in the Asian Pacific regions is one of the fastest-growing and in 2014 had 500 million new subscribers. by 2025 the region is estimated to add 247 million new subscribers. Additionally, Internet usage subscribers within the region are projected to increase to 663 million by 2025. The total number of users of Internet services and with mobile subscriptions is estimated to be around 2.7 billion in the region by 2025.
 

Utilities

Utilities are a central component of people’s lives such as water, heating, and electricity . European countries have a higher standard of living and most citizens who live there are able to have these essential utilities in their homes. Utilities themselves are a good investment as they are stable, however, they require a heavy amount of investment and require countries to concentrate a large portion of their budget to ensure adequate utility services. Countries worldwide have been dealing with increased demand and increased pricing for electricity and natural gases. Europe has been struggling with electricity prices as their economy has been recovering from COVID-19. There has been increasing prices for coal and natural gases, with a high demand for infrastructure changes due to challenges, and geopolitical tensions with the Russia-Ukraine war have pushed prices upwards. 


Places in Asia, such as India, Vietnam, and China do not have adequate utility services, however, there is a rise in investment for these services as these countries develop and grow their economies. Many people in these countries still live below the poverty line and cannot afford basic utility services such as water and heat. As the middle class grows in China, however, there has been a rise in those who have utility services and the Indian government has worked to improve the infrastructure needed for running water to those below the poverty line.


EUROPE

Due to rising energy prices in Europe, the governments have launched multiple interventions including policy changes, tax cuts, subsidies, and price limits to protect consumers from increasing energy prices. This has also led to a growing need for power market reforms by diversifying the energy and fuel supplies, and may lead to purchasing supplies from other countries, and increasing the need for other countries to purchase energy and natural gas from Europe. The value of the European power and utility sector has increased by 25% to EUR25.4 million due to increased activity in the chemicals and power utility sub-sectors.  In 2022, the total revenue in the Utilities market is reached US $49 billion. Europe has continued to put effort into renewable energy and has implemented the Green Deal Industrial Plan (GDIP), and the EU’s newest plans are moving towards wind and solar energy manufacturing among other energy transition technologies. Companies such as Britain's Centrica PLC, which raked in record profits thanks to upstream gas exposure, will need to start to make the shift to clean energy through energy security and system security. 


ASIA

Asia’s utilities sector, much like Europe's, has been affected due to the COVID-19 pandemic and Russia's invasion of Ukraine, leading to higher energy prices. Discussion of Southeast Asia’s ambitious targets for reaching carbon neutrality and curbing reliance on coal-fired power took place during the UN Climate Change Conference (COP26) in 2021, as six Southeast Asian countries have already announced net zero emissions and carbon neutrality target. While countries in Asia have ambitious goals for becoming carbon neutral, fossil fuels still dominate Asia’s energy makeup, as fossil fuels make up about 83% in 2020 compared to renewables’ share of 14.2% in the same period. Asia’s dependency on fossil fuels will continue to increase the region’s vulnerability to energy price shocks and supply constraints, similar to what was seen after Russia's invasion of Ukraine, and it is expected that by 2050, oil, natural gas and coal will account for 88% of the total primary energy supply.  On the gas consumption front, the Asian Pacific region in the future is estimated to account for over half the global gas consumption on the heels of China and India. but this increase is dependent on the policy stands the two nations take in terms of natural gas production and development. According to the IEA emerging Asia’s call for expansion in power, the sector is reinforced by the addition of 15 GW of gas-fired generation capacity across the region.


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