COVID-19 has made a significant global impact. In the first quarter of 2020, both developed and emerging economies suffered major contractions as production and consumption diminished. As the search for a vaccine continues, it is clear that the recovery will not be rapid. To combat the recession initiated by the pandemic, public and private sectors have added more liabilities to their already-heavy balance sheets. Corporate debt, which was at historic highs before the pandemic, has now reached a risky level. And as governments continue to launch various stimulus packages to revive their economies - the US, £1.63 trillion; Germany, £450 billion; the UK £350 billion; India, £220 billion; South Korea, £450 billion - it is clear that there is no one solution that fits all.
How is this crisis different from the 2008 financial crash? What can be learnt from the differing responses from governments across the globe? What has been promised and which stimulus packages have been the most effective so far? How can businesses control their rising debts to ensure long-term survival?
Continuing a series looking at the long-term impact of the pandemic on the economy, business and society, the Financial Times, GEF and Tianfeng Securities are bringing together thought leaders to discuss the economic impact of COVID-19, and an analysis of the impact of various global stimulus packages.