June 3, 2020
Measures to control the spread of the novel coronavirus (COVID-19) are forcing thousands of businesses to close their doors. Effects on the world economy have been devastating. In April 2020, the International Monetary Fund warned that business closures and lockdowns would throw the world into the deepest recession since the Great Depression.
In the euro zone, the economy has shrunk at a record-high pace during the first three months of 2020. In April, U.S. unemployment level hit 14.7 percent, its worst point in almost a century. Meanwhile, in Japan, the number of business bankruptcies was rising.
For governments, COVID-19 is a two-tiered challenge: conquer the virus’s health threat while combating the ensuing economic damage. The result involves numerous government measures to provide temporary support to businesses and citizens.
“We’re seeing more state and federal governments apply lessons learned from the financial crisis,” says Joe Monaghan, chief executive officer of public sector partnership at Aon. “Even beyond short-term stimulus planning in the pandemic, they’re using data and analytics to weigh longer-term risks: understanding their sources of revenue and deciding the best ways to protect them, including partnerships with the private sector.”
WHY IT MATTERS
Here is a look at what a few of the world’s governments are doing to help offset the negative economic impacts of COVID-19.
Preserving Both Physical And Economic Health
The world after COVID-19 will be very different from the one before the outbreak, and much is still unknown. “While there isn’t a one-size-fits-all approach across economies, the road to recovery will require innovative thinking and likely lead to even more collaboration across both the public and private sector to emerge from this more resilient than before,” says Monaghan.
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