The COVID-19 pandemic has critically tested OECD economies, with major differences in economic repercussions at the subnational level. The pandemic can be characterised as a combination of shocks to local economies: (i) a recession, (ii) a supply-side shock mirroring a natural disaster, and (iii) the economic and workplace adjustments accelerated by pre-existing megatrends (e.g. automation, green transition). This paper reviews the empirical evidence for effective policies from across the OECD to strengthen local economic resilience through support for people, firms and places. There is a strong need for effective policies in times of recessions, natural disasters and long-term structural change. Policies that strengthen economic resilience strongly overlap with policies for local productivity growth and vice-versa. Moreover, some policies aiming to increase resilience through adding redundancy in production or infrastructure can serve productivity in the long-term.
