Log In |   Login IntelliNews Pro    ViennEast Compass: CESEE outlook, planning for new normal  There is no end to the COVID-19 pandemic in sight, but the new normal that will emerge could benefit the countries of Central Eastern and Southeastern Europe (CESEE), due to the new opportunities that will arise. By Marcus How of Vienneast in ViennaAugust 3, 2020 Summary: The economic impact of the COVID-19 pandemic will hit CESEE hard and over a sustained period that will extend over and probably beyond the 1-2 year outlook. The tourism and regional aviation sectors will endure the most immediate consequences. State-owned enterprises reliant on price subsidies will also face increasing financial pressures. The state is likely to become an increasingly assertive actor in the region, although entrenched hybrid regimes will not be immune from political instability in the 5- to 10-year outlook, even if they have been strengthened in the medium-term. Multilateralism will persist as geopolitical interests compete amid strategic limbo in the region, although this will provide commercial opportunities, not least because CESEE is a gateway and relative safe haven. CESEE will not challenge yet alone supplant China in Western supply chains, nor will automation move any faster. Overall, the consequences of the COVID-19 pandemic will be, at most, to reinforce existing trends as opposed to generating new ones.   Sectors to watch: Medical equipment; health; manufacturing (automotive and electronics); ground infrastructure; IT; education; regional aviation; tourism and entertainment.