Impact of Covid-19 pandemic on global output, employment and prices: an assessment

Abstract

The effects on human health and life have been catastrophic and its adverse economic effects have been profound, as many countries are engaged in lockdowns, social distancing, mobility, and other restrictions. These have caused unprecedented disruptions in production, distribution, consumption, supply chains, tourism, trade, investments, among others. This paper utilises a simple conceptual framework to anticipate the potential adverse impacts of the pandemic on the economy focussing specifically on output, employment, and prices. The anticipated potential outcomes on the above-mentioned global indicators are assessed utilising publicly available data and information. Both qualitative and quantitative information are utilised which are obtained from various primary and secondary sources. Consistent with the potential outcomes, the paper finds and reports severe adverse impact of the pandemic on global production, employment, and prices. Finally, the paper discusses policy responses to combat the crisis by governments and international organisations and discusses some business implications.