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The Impact of Coronavirus on the Global Economy

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  • Otaviano Canuto

Abstract

COVID-19 brought the global economy to a sudden stop, causing shocks to supply and demand. Starting in January 2020, country after country suffered outbreaks of the new coronavirus, with each facing epidemiological shocks that led to economic and financial shocks as a consequence. How quickly and to what extent will national economies recover after the pandemic has passed? This will depend on success in containing the coronavirus and on exit strategies, as well as on the effectiveness of policies designed to deal with the negative economic effects of the coronavirus.The impact of coronavirus on the global economy will extend beyond 2020. According to forecasts from the International Monetary Fund and World Bank, GDP per capita at the end of 2021 is still expected to be lower than December 2019 in most countries.Emerging markets and other developing countries, in addition to facing difficulties in dealing with their own coronavirus outbreaks, have suffered additional shocks from abroad. In their cases, the new coronavirus brought a perfect storm. One can foresee a post-coronavirus global economy marked by higher levels of public and private debt, acceleration in digitization processes, and less globalization.

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  • Otaviano Canuto, 2020. "The Impact of Coronavirus on the Global Economy," Policy notes & Policy briefs 1929, Policy Center for the New South.
    • Handle: RePEc:ocp:ppaper:pb20-58
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    1. Horn, Sebastian & Reinhart, Carmen M. & Trebesch, Christoph, 2021. "China's overseas lending," Journal of International Economics, Elsevier, vol. 133(C).
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    1. Gerson Javier Pérez-Valbuena & Diana Ricciulli-Marín & Jaime Bonet-Morón & Paula Barrios, 2021. "Reglas fiscales subnacionales en Colombia: desde su concepción hasta los resultados frente al COVID-19," Documentos de Trabajo Sobre Economía Regional y Urbana 19126, Banco de la República, Economía Regional.
    2. Arielle Kaim & Tuvia Gering & Amiram Moshaiov & Bruria Adini, 2021. "Deciphering the COVID-19 Health Economic Dilemma (HED): A Scoping Review," IJERPH, MDPI, vol. 18(18), pages 1-13, September.
    3. Salma Benchekroun & V. G. Venkatesh & Ilham Dkhissi & D. Jinil Persis & Arunmozhi Manimuthu & M. Suresh & V. Raja Sreedharan, 2023. "Managing the retail operations in the COVID‐19 pandemic: Evidence from Morocco," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 424-447, January.

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