The Pandemic and the Global Economy


20 de abril de 2020.


Developing countries face collapsing international trade, falling
remittances, sharp reversals of capital flows, and currency
depreciation. Only bold policies -debt relief, international 
financing, planning and more- will avert further catastrophe.


There are still many uncertainties about the COVID-19 pandemic: about
the extent of its spread, its severity in different countries, the length of the
outbreak, and whether an initial decline could be followed by a recurrence.
But some things are already certain: we know that the economy impact of
this pandemic is already immense, dwarfing anything that we have
experienced in living memory. The current shock to the global economy is
certainly much bigger than that of the 2008 global financial crisis, and is
likely to be more severe than the Great Depression. Even the two world
wars of the twentieth century, while they disrupted supply chains and
devastated physical infrastructure and populations, did not involve the
restrictions on mobility and economic activity that are in place in the
majority of countries today. This is therefore an unprecedented global
challenge and requires unprecedented responses.

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