
The Covid-19 pandemic has pushed the global economy into a level of recession that was last witnessed during the World War II. Emerging markets and developing economies are the worst affected as five out of six economies are expected to fall into outright recession as per capita income declines drastically.
Linda Yueh
Linda Yueh, an economist at the University of Oxford, shared an article by World Bank on the global impact of the Covid-19 pandemic. The article notes that the recession caused by the pandemic will be the deepest since World War II and twice as deep as the 2008 global financial crisis.
The article further notes that emerging markets and developing economies are expected to contract for the first time in 60 years. The global unemployment rate is also expected to rise to the highest levels since 1965, the article adds.
1/ World Bank: Current forecasts suggest that the coronavirus (COVID-19) global recession will be the deepest since World War II, with the largest fraction of economies experiencing declines in per capita output since 1870. https://t.co/viBb02yl1S
— Linda Yueh (@lindayueh) June 22, 2020
Dany Bahar
Dany Bahar, an economist and Senior Fellow at the Brookings Institute, shared an article on the suspension of foreign work visas by the US government. The article notes that the government will suspend visas for the H-1B programme designated for high-skilled workers and other categories. The new order will prevent hundreds of people from coming to the US for work.
Bahar noted that the decision made by the government will result in a long-term, self-induced recession for the US. He added that these policies are xenophobic and lack evidence to prove their rationale.
Prepare for a long term and self induced recession, courtesy of the US President xenophobic evidence-less policies.
America, you could do better than that. https://t.co/yYgDxHg8Dc
— Dany Bahar (@dany_bahar) June 22, 2020
Ian Bremmer
Ian Bremmer, a political scientist an author, shared an article on how the Covid-19 pandemic has forced developing countries to choose between paying lenders or funding hospitals.
Developing countries such as Angola, Sri Lanka, the Gambia, and the Republic of Congo were focussed more on paying off their external debt debts than investing in their healthcare facilities. As a result, the healthcare systems in these countries were underfunded posing a major hindrance in containing the spread of the virus.
#COVID19 has increased the pressure on developing countries to make a tough and often deadly choice: pay lenders or fund hospitals? #GraphicTruth
@gzermedia: https://t.co/AXPbxNu9qs
— ian bremmer (@ianbremmer) June 23, 2020
Guntram Wolff
Guntram Wolff, economist and director of Bruegel, an international economics think-tank, shared an article on how India should retaliate economically for the border clashes initiated by China. The article notes that India should join a coalition of countries addressing some of the specific aspects of China’s economic behaviour.
The articles adds that India should try to reduce its interdependence on China so that its economic vulnerability does not increase.
Toward a smart Indian response to China – Asia Times @Bruegel_org senior fellows @sumanbery @Aligarciaherrer https://t.co/WkuBOoAiXR
— Guntram Wolff (@GuntramWolff) June 23, 2020