Change in the structure of demand for goods and services creates a major economic challenge

A drastic change in the structure of demand for goods and services leads to a serious economic challenge. The production of some goods and services must increase, while that of other goods and services must decrease. But the supply of goods and services is rigid in the short run, which results in a shortage of production capacity in some economic sectors (and therefore demand rationing) and excess capacity (underemployment) in other s . Several factors driving drastic change in the structure of demand for goods and services are now present: The COVID crisis is leading to a significant substitution of goods for services in total demand (due to working from home, modernisation of the economy and e-commerce); The energy transition will lead to a sharp increase in demand for goods (investment in renewable energy production, in the decarbonisation of industry and in the thermal renovation of buildings and housing). The structure of the supply of goods and services and of employment will therefore need to adjust quickly, which is difficult and costly.