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Macro trends changing

in the new reality of

post-COVID-19

COVID-19 that originated in China and turned into

a global pandemic, has changed a lot of things in
the business world and in our social lives. “Macro
Trends in the New Reality”, prepared by KPMG,
intends to shed some light on the uncertainty
created by the pandemic, define the ‘new reality’

that emerged from the pandemic, and act as a guide
in adapting to this course.

The report evaluates the macro trends of the new reality through PES-
TLE analysis: from political, social, technological, and environmental
aspects. Shifting the global political balances, COVID-19 pandemic also
causes uncertainties in the economic order. It also brings acceleration to
digitalization and automation in the area of technology, while transform-
ing people’s social approach and preferences. It is believed that the crisis
created by the pandemic will bring new regulations and make the impacts
of the climate crisis more visible.

Underlining that globalization was the rising trend in the world since the
beginning of 90s, the report states the new rising trend is protectionism,
which shows that the global situation has evolved into its opposite. Al-
though countries are in cooperation with each other through free trade
agreements due to their foreign trade and customs policies; protectionism
and nationalism have become the rising trend for global trade, which will
remain on the agenda of many markets in post COVID-19. Protectionism
measures that have been rising due to the impacts of the pandemic mean
to reinforce local producers against foreign competition.

Managers face a difficult test

Such uncertain times require managers to be able to face a difficult test.
The report states that in order to stay standing under such circumstances,
companies should work on scenarios addressing unlimited possibilities,
and therefore need assistance from dynamic financial models supported
by artificial intelligence. The report suggests companies to use zero-based
budgeting method for their annual budgets and strategic business plans.