Sumary of COVID-19 recovery: some economies will take longer to rebound – this is bad for everyone:
- But like the uneven impact of the pandemic itself, the pace of economic recovery is massively divergent across countries..
- More than a year on from the start of the pandemic, global prospects appear to be improving, according to recent reports by the OECD and the World Economic Forum..
- The data shows that some countries – such as the US, South Korea, Japan and Germany – are on course to recover to pre-pandemic levels of GDP per capita by the end of 2021..
- But others, such as Spain and Iceland, both of whom suffered a huge blow from the collapse in tourism revenues, are expected to operate below pre-pandemic levels until at least mid-2023..
- Unsurprisingly, the UK and the US, with the highest projected growth rates among advanced economies – 7.2% and 6.9%, respectively – also top the league tables for size of pandemic response policy packages and share of the population successfully vaccinated..
- Public spending measures included transfers to (low-income) households, grants and tax holidays to businesses, and additional funding for healthcare systems..
- Some supplemented conventional interest rate cuts with unconventional measures such as liquidity injections and asset purchases..
- The pandemic hit emerging markets harder than advanced economies, unlike in the aftermath of the 2008 global financial crisis….