Covid will leave deep scars in world economy even after recovery
- April 17, 2021
- Vellore Arthi, economics, Bloomberg, South China Morning Post, Business Standard, The Japan Times, April 17, 2021
While $26 trillion worth of crisis support and the arrival of vaccines have fueled a faster recovery than many anticipated, the legacies of stunted education, the destruction of jobs, war-era levels of debt and widening inequalities between races, genders, generations and geographies will leave lasting scars, most of them in the poorest nations. “It’s very easy after a gruelling year or more to feel really relieved that things are back on track,” said Vellore Arthi of the University of California, Irvine, who has examined the long-term health and economic hit from past crises. “But a lot of the effects that we see historically are often for decades and are not easily addressed.” Experts, including Arthi, say there needn’t be a lost decade if the right policy steps are taken, especially in the areas of reskilling workers and putting a floor under those hit hardest by the crisis.
For the full story, please visit https://www.bloomberg.com/news/articles/2021-04-17/economic-recovery-after-covid-scars-will-remain-after-the-rebound.