How the Covid-19 Crisis is Causing a Demand-driven Recession

Crisis Management (Contingency Planning)
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Hira Aziz
The Covid-19 pandemic initially brought a health challenge for the world and has become a health crisis for countries with a weak health management system. With the largest death rates since previous endemics, COVID-19 has created panic in the world. As a result, it does not only create the health crisis, but it also hit the global economy badly which is expected to lead to the deepest recession in decades. Emerging markets and developing economies as well as advanced economies are facing a steep recession. According to a World Bank report "Global Economic Prospects," the baseline forecast of the GDP of the global economy is a sharp decline of 5.2% in 2020. Beyond that, it is very hard to predict the exact amount of human and economic loss from this novel coronavirus, because of the uncertainty on how things will evolve. Amongst all this misery, it's interesting to at least understand why the COVID-19 recession is fundamentally causing a demand-driven recession. According to Keynesi (...) Read more? Sign up for free


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