Around $22 trillion (£16.7 trillion) was wiped off the value of publicly listed companies in Q1 2020 as the COVID-19 pandemic spooked markets, investors and consumers, according to a study from Brand Finance, published in partnership with the International Advertising Association (IAA).

On a brighter note, the analysis of 55,000 publicly listed, branded companies worldwide found that although their total enterprise value dropped from $116.6 trillion to $94.8 trillion between January and April, it bounced back to $121 trillion in September, demonstrating how brands matter to business.

While the global economy as a whole is forecast to contract by 4.4% this year  by the IMF (International Monetary Fund), branded companies that convey trust to consumers, like Apple, Amazon, Microsoft, Tesla and Visa, have already bounced back from the decline caused by the COVID-19 crisis to record growth of 3.8 per cent. Brand Finance estimates that brands are among the most valuable assets in a company, accounting for around 20% of total business value on average.

“This report shows us that the importance of brands increases during times of crisis,” said IAA Managing Director, Dagmara Szulce. “Brands communicate the origin, quality and authenticity of a product, but they also convey trust, identity, pride, passion, creativity, innovation and optimism. Strong brands restore consumer confidence, and brand competition can rebuild economic strength.”

You can read the full report here.