The coronavirus (COVID-19) pandemic has brought the world’s economy to a shuddering stop. In many respects it is the biggest crisis humanity have face in decades, if not ever. But once the virus burns out what will happen then?
There are two scenarios: a rapid bounce back or the beginnings of a years-long Great Depression. The truth lies somewhere in between these extremes, but a lot will depend on how governments act now. The virus is moving very fast so time is of the essence.
And like the victims of the illness, the affect on countries will heavily depend on how healthy their economies were at the beginning of the crisis, says Elina Ribakova, deputy chief economist for the Institute of International Finance (IIF).
Ben Aris, editor-in-chief of bne IntelliNews
Elina Ribakova, deputy chief economist for the Institute of International Finance (IIF)