After-Results of the COVID-19 Pandemic: Prospects for Medium-Time period Financial Harm
This chapter examines the potential persistent harm (scarring) which will happen from the COVID-19 recession and the channels via which they might happen. Importantly, monetary instabilities—usually related to worse scarring—have been largely averted within the present disaster to date. Whereas medium-term losses are anticipated to be decrease than after the worldwide monetary disaster, they’re nonetheless substantial, at about 3 p.c decrease than pre-pandemic anticipated output for the world in 2024. The diploma of anticipated scarring varies throughout international locations, relying on the construction of economies and the dimensions of the coverage response. Rising market and creating economies are anticipated to endure extra scarring than superior economies.
