Positive outlook amidst challenges

The global economy was caught unprepared as it battles the coronavirus (COVID-19) pandemic.

- NORMITA T. GUERRERO

The health crisis posed tremendous challenges, not only to the economies but also to the sociopolitical conditions of affected countries. The pandemic brought uncertainties and the negative impact has been reflected in the disruption of supply chains and subsequent business losses. The United Nations forecast that the pandemic will shrink the global economy by 3.2% in 2020 with global economic output declining by $8.5 billion over the next two years. The World Bank estimates a 0.5% growth in the East Asia and Pacific region in 2020 but will rebound to 5.4% in 2021. China, which is expected to slow to 1% this year, is projected to recover with the growth of 6.9% in 2021; while countries in Southeast Asia are showing their resiliency and on the way to an economic rebound starting 2021.

As the countries around the world work to fight the coronavirus, the role of the plastics industry has gained importance as producers perform the urgent tasks of supplying personal protective equipment, masks, protective shields, ventilators, and other medical supplies. Plastics also became a convenient packaging for foods and other products. Despite the supply disruption and shutdown of industrial production in some countries, the global plastic market is projected to grow by 3.2% from 2020 to 2027, based on Grand View Research estimates. Industry analysts anticipate demand for plastics to remain high in such sectors as packaging, automotive, medical, electronics/electrical, and construction in 2021.

In this special Outlook 2021 report, the editorial team of International Plastics News for Asia, gathers the insights of representatives from leading companies on the factors that affected their operations in 2020, how they meet the challenges posed by the pandemic, and what future industry trends will affect their product development in 2021.

TECHNOLOGY AND MACHINERY

Major step forward for digitalisation