Nigeria and other emerging countries, according to the International Monetary Fund (IMF), will likely suffer bigger losses due to a lack of vaccines and smaller pandemic-aid packages.
The Washington-based lender warned that pandemic-induced losses for both economic output and employment would be severe in coming years in new research titled “Healing the pandemic’s economic wounds demands immediate action.”
In its World Economic Outlook, the bank stated this.
“Emerging market economies are expected to suffer bigger losses because they have fewer access to vaccines and smaller pandemic-support packages,” the paper stated. The advent of the war in Ukraine has added to the challenges for many economies.”
The predicted sluggish labor market recoveries in emerging market economies, as well as substantial disruptions to schooling in both advanced and emerging economies, are among the primary causes of scarring from the pandemic, according to the Washington-based lender.
Policymakers must move quickly to restore the harm caused by the crisis and avoid decades of lower economic production due to lost human capital, according to the report.
The paper goes on to say that workers who lose their employment during a recession often suffer long-term consequences.
“In addition to the issues in the labor market and disruptions in schooling, there are other routes for scarring as well,” it continued. According to new research published in the International Monetary Fund’s April World Economic Outlook, “an increase in corporate debt and vulnerabilities in the industries severely hit by the pandemic could contribute to scarring by weighing on investment and productivity for years to come.”
Time is short for limiting learning losses, according to the International monetary fund (IMF), because education is cumulative, with each year building on the previous.
This could include things like extra tutoring or a longer school year, according to the bank.
“In addition, pandemic-era support measures for enterprises and people, like credit guarantees and job retention rules, will need to be tapered back as recoveries build,” it continued. As the pandemic eases, this will assist prevent delaying the reallocation of employees and resources to their most efficient applications, as well as stimulate productivity development.”