MasterCard’s Economic Institute has released Economy 2021 global outlook report giving a detailed analysis of the economic impacts of Covid-19 on the state of the economy. According to estimates, there has been a 20-30% surge in e-commerce spending which will form a permanent feature in the overall retail spending.
Another aspect of the analysis is the shift towards the use of digital platforms, driven by changes in consumer behavior, restrictions in movement, fintech disruptions, online banking, and opportunities at financial inclusion.
The MasterCard Economics Institute was launched last year to analyze macroeconomic trends from the viewpoint of the consumer. The report can be used by governments and businesses of all sizes in strategic decision making in the future given the transformative 2020.
The report states that e-commerce is a sure way of making businesses pandemic proof and promoting their adoption by senior citizens. Also pointed out is the continued digitization of MEA as a way of advancing financial inclusion.
Fintech disruption in banks is also a key driver for growth in online banking, particularly in East Africa. As brick-and-mortar businesses decline in 2021, people are more in favor of online business creation and adopting initiatives that connect consumers to small businesses and micro-merchants. Worth noting is the youthful population that is powering the continent. Africa takes 19 slots on the world’s top 20 youngest countries list.