Is our future bleak? Signs indicate it may be

The COVID-19 pandemic has significantly curtailed economic activity, turning a health crisis into an economic one. The disruption to economic activity has resulted in a fall in commodity prices and a selloff in financial markets, amplifying shocks to the economy. Despite policy measures by countries, the global economy is likely to experience the deepest recession since the Great Depression. This paper looks at how the pandemic has disrupted global economic activity, how a deep recession of this magnitude followed by a slow and partial recovery could alter the structure of the economy and challenges ahead for long-term economic growth.

Key Takeaways

  • With per capita GDP contracting in more than 90% of economies and growth estimates been revised down more swiftly and sharply than ever before, the pandemic-induced recession would be the worst recession in history.

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