TitleThe cost of doing nothing : the price of inaction in response to the COVID-19 crisis
AccessFull text:Cost%20of%20inaction%2010-07-20 - PDF ;
The global crisis induced by the COVID-19 pandemic is unprecedented in nature. Emerging as a health crisis, the pandemic has become a threat to global prosperity and stability. Keeping in mind the fundamental uncertainty about the trajectory of the pandemic and the economic forecasts, there is common consensus that the global economy will experience the deepest recession since the Great Depression and the broadest collapse in per capita income since 1870. As of 24 June, the IMF projects a -4.9 percent contraction in global GDP in 2020, followed by a protracted and uneven recovery due to the persistence of the shock. It is better, cheaper and more dignified to frontload responses to the pandemic and its secondary impacts. Waiting and then reacting when the full impacts are already visible would be a more expensive proposition. Delaying action not only shifts the burden to the future, but the price of the response will also exponentially increase, as the crisis cascades and reverberates for years to come. Acting now to mitigate the impact saves money in the long term.