Coronavirus Economic Planning: Hoping for the Best, Prepared for the Worst
This blog is part of a special series on the response to the coronavirus. Read full article on the International Monetary Fund
Individuals infected by the coronavirus potentially face a blow to their health and personal and economic well-being.
Similarly, countries hit by a sudden and unexpected public health emergency—as coronavirus is proving to be—can see their economies slow and their budgets squeezed as they spend more to counter the impact of the virus. At the same time, they may experience a drop in revenue from falling economic activity. Countries could also face lower export revenues due to falling tourism receipts or a decline in commodity prices. A sudden halt in capital inflows could exacerbate the situation further. Together, this can result in an urgent balance-of-payments need to counter the mismatch between foreign exchange inflows and outflows.
Even if an individual country is fortunate enough to escape widespread viral contagion, the spillover effects from global developments or broken supply chains may still lead to faltering economic activity.
Read full article on International Monetary Fund