10/06/2020
Updated estimates of the impact of COVID-19 on global development.
The long-term damage of COVID-19 will be particularly severe in economies that suffer financial crises and, in energy exporters, because of the collapse in oil prices. Dana Vorisek, a a senior economist in the Prospects Group of the Equitable Growth, Finance and Institutions Global Practice, estimates that Emerging Market Economies will suffer significantly. Over a five-year horizon, a recession combined with a financial crisis could lower potential output by almost 8 to 11 percent.
Even with policy support, the economic repercussions of the coronavirus pandemic are expected to be long-lasting.