Get ready for more pain caused by COVID-19 as well as by the policies intended to hold it in check.
by J.D. Tuccille
If you thought the economic toll wrought by the COVID-19 pandemic was only going to be horrendous, you may have been overly optimistic. A combination of voluntary behavior changes and government-imposed lockdowns that choked-off social and economic activity are now projected to have even worse consequences than economists initially feared. Life may start returning to normal sometime next year, but there will be lasting pain even if we avoid another wave of the virus.
“Global output is projected to decline by 4.9 percent in 2020, 1.9 percentage points below our April forecast, followed by a partial recovery, with growth at 5.4 percent in 2021,” Gita Gopinath, Director of the Research Department at the International Monetary Fund (IMF), wrote this week.