ECONOMIC

The recent outbreak of the coronavirus has struck panic and uncertainty amidst global society. These attributes, combined with job loss, lockdowns, and sickness, will accordingly stagnate the growth of all countries, especially developing ones. Therefore, decisive shifts in the attitudes of policymakers are necessary to invoke change. Without the help of governing bodies, the public will continue to suffer emotionally and financially. Economists predict that by the end of 2020 there will be a loss of over 6$ Trillion in world gross product, as well as a $12 Trillion loss by the end of 2021. In even the richest countries, unemployment is expected to continue to rise to double digits. With that said, a comprehensive and pivotal global recovery plan will hopefully offset the imbalance of expansion. Through monetary policy, central banks have proven to avoid bankruptcy or even closure which would have surely put the economies of the U.S. and other global economies to an even deeper recession; however, fiscal stimulus will bear the quintessential responsibility in recovery in order to aid households and businesses who are currently in hardship due to COVID-19. In any case, if policy is not enacted, the global economy will likely not see a V-shaped recovery that many are hoping for and instead would probably traject a U-shaped pattern through prolonged recession. In the worst case scenario, an L-shaped model is not improbable such that the economy never reaches a state of “bounce-back.” This recession is unlike anything that analysts have seen before since it bears little resemblance to the economy during the Great Recession or even during war times where a positive output always follows via military funding. As a consequence of the pandemic, developed nations will suffer through job loss and failing output while developing countries who rely on a select few commodities and tourism will endure the greatest amount of socioeconomic damage.