The IMF reported a worsened economic outlook and projected global growth to contract by 4.9 percent this year in its last report in June 2020. But this is not over yet.  A second major global wave of the disease could lead to further disruptions in economic activity.

Other risks include stretched asset valuations, volatile commodity prices, rising protectionism, and political instability. On the positive side, medical breakthroughs on vaccines and treatments could lift confidence and economic activity.

Many countries will be deeply affected by the economic scars of this crisis. Severe labor market dislocations are a major concern. School closings also impacted the situation. The bottom line is that the pandemic is likely to increase poverty and inequality, further painfully exposing weaknesses in health systems.

For a more inclusive and resilient recovery, two further actions recommended:

1. Protect People and Workers. Across the world, countries have ramped up economic lifelines to individuals and workers. Support Firms.  People and workers are also supported when lifelines are extended to viable businesses. Take advantage in digital transformation, restart economy through spending and investment.

2. Collective Efforts: Guaranteeing adequate health supplies, avoiding further ruptures in global trade system, ensuring that developing countries can finance critical spending needs and meet debt challenges and lastly strengthening global financial safety net, similar to emergency financing witness in 2008 crisis.

Source: IMF