Protectionism in steel and metal industries makes sense, but it could do more harm than good
There are long-term, undesirable effects on other equally important sectors and consumers
The pre-Covid-19 challenges faced by local businesses in the diverse steel, metals and construction industries, two recent successive technical recessions and the unabated coronavirus-induced economic crisis, pose constraints to enhanced industrial activity. Companies are grappling with poor cash flow and lack of demand for their products, compelling senior executives and managers to recalibrate processes and review strategic plans, operations and budgets to weather the Covid-19 storm.
Disconcertingly, recent preliminary data (including high-frequency data) reflect the extent to which the economic crisis has wreaked havoc on industrial activity. Encouragingly, the available information also provides insights into idiosyncratic challenges faced by the various subsectors, enabling mitigating plans to be developed and implemented...
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