Sustainable economic recovery plan essential to recover from the impact of the Covid-19 pandemic, according to leading macroeconomic influencers

2 July 2020 (Last Updated July 2nd, 2020 07:23)
Sustainable economic recovery plan essential to recover from the impact of the Covid-19 pandemic, according to leading macroeconomic influencers

Governments across the world have collectively injected more than $10tn in fiscal stimulus since the onset of the Covid-19 pandemic. Despite this stimulus, unemployment and business closures have been at an all time high. Governments, workers and employers need to work together to draft an economic recovery plan that is both sustainable and effective in the long run.

Colin Williams

Colin Williams, professor of public policy at the University of Sheffield, shared an article on the forecasts made by the International Labour Organization (ILO) on the tough road ahead for the global job market. The ILO noted that the Covid-19 pandemic has affected the job market more than initially predicted.

The article noted that working hours fell by 14% in the second quarter of 2020 equivalent to the loss of approximately 400 million jobs. A sustainable economic recovery plan is necessary to ensure that the pandemic does not increase the inequalities among the people.

Rob Gill

Rob Gill, managing director at Altura Mortgage Finance, shared an article on forecasts made by the Bank of England’s chief economist on a possible V-shaped recovery for the UK although a prolonged period of unemployment is expected.

The rebound is attributed to the return in consumer confidence as lockdowns are gradually lifted. The article also notes that the UK GDP is expected to contract by 20% down from the previously estimated 27%.

Prof. Steve Hanke

Prof. Steve Hanke, an economist at Johns Hopkins University, shared an article on the water crisis in Venezuela. He noted that the destructive economic adopted by President Nicolas Maduro’s government have led to the increase in inflation and forced citizens to adopt drastic measures to gain access to water.

The article noted that 86% of Venezuelans do not have access to reliable water service including 11% who do not have any water supply. The situation has led many people to dig their own wells to access water.

Howard Archer

Howard Archer, chief economic advisor to EY ITEM Club, shared an article on the jobs cuts announced by companies in the UK including retail and aviation. More than 12,000 people are expected to lose their jobs due to the announced made by the companies.

The job cuts are being announced to save costs as the government’s furlough scheme started to be pared back from August and end in October. The article noted that the government will need to announce more stimulus to deal with the impact of the pandemic.