Even prior to Covid-19, we were beginning to see cracks in the multilateral order that we have built. We had warned of the impact of heightened political and trade tensions on our economies. If anything, the Covid crisis gives us an opportunity to “reset”.
It is a pleasure to participate in this virtual meeting of the Inter-American Dialogue. I would like to thank Michael Shifter and the Inter-American Dialogue for organising this meeting at such a crucial moment for our economies, our societies and for humanity.
We are currently facing one of the biggest health and economic crises in history. It is costing many lives, and threatening the stability of our democracies, our economies and our societies, with developing countries likely to be hit the hardest.
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The Covid-19 pandemic is having a significant impact on the economy
The COVID-19 pandemic is causing large-scale loss of life and severe human suffering. Economic contagion is also spreading fast. This double shock could be devastating if we do not act quickly, effectively and in a coordinated manner.
COVID-19 has taken a terrible human toll and the necessary containment measures have devastated our economies and societies. We have calculated a 2 percentage points fall in global annual GDP growth per month of confinement, but this is an optimistic assumption now.
In light of the economic crisis it has triggered - which the OECD estimated at a loss of 2pc of annual GDP per month of confinement - I commend the Presidency for calling this meeting.
COVID-19 has taken a terrible human toll and brought our globalised economy to a near standstill. The OECD estimates a loss of 2 percentage points in this year’s GDP growth, per every month of confinement. The pandemic became an economic crisis and will have long-lasting impacts in our labour markets, and in our social fabric.
The OECD estimates the impact of the crisis at a loss of 2 percent per month of confinement in annual GDP growth in 2020. Many economies are heading into deep recession.
2020 IMF and World Bank Spring Meetings: Written Statement to the Development Committee