The 2021 World Economic Situation and Prospect (WESP) report has cautioned businesses not to expect in-person interaction to return to normal even if millions are vaccinated against COVID-19, a situation the report said is likely to reduce governments' revenues.
The report, prepared jointly by United Nations Department of Economic and Social Affairs (UN DESA), United Nations Conference on Trade and Development (UNCTAD) and the five United Nations Regional Commissions, predicts that remote work will likely become the new norm for many service sector jobs, adding that meetings and conferences may remain largely digital, reducing demand for business travel-related services.
"Consumer spending will increasingly move online. Leisure and entertainment will also become increasingly digital, replacing brick-and-mortar venues for retail and entertainment. These shifts will likely reduce local government revenues and adversely impact the delivery of basic services: health, sanitation, education, transportation and public safety, in urban centres worldwide," the report said.
In a post-COVID-19 world, the report predicted that firms and sectors that can quickly adapt digital technologies would likely fare better, while making many existing jobs redundant.