The NERI's latest Report Series paper by NERI Co-director, Dr Tom McDonnell describes the economic fallout and the appropriate policy response after one year into the worst global pandemic the world has seen in a century.
There has been unprecedented disruption to societies and economies alongside a sharp rise in extreme poverty within emerging economies as jobs have been lost and income levels have fallen. Lost hours of education and lower levels of investment could structurally shift global output levels downwards in the future.
Yet the outlook is hopeful. The vaccine rollouts are gathering pace in many countries and fiscal and monetary policy continue to strengthen national and regional economies. Business sentiment and business expectations are now improving beyond the near-time horizon.