Socio-Economic Mitigation Measures Targeting COVID-19: International Experience

Abstract

A surge in COVID-19 incidence in early April has shown that the world pandemic has not yet passed its peak. Morningstar and Fitch rating agencies forecast a reduction in global GDP in 2020 by 1.4% and 1.9%, respectively, while the Chinese economy will be the one to be hardest hit by the pandemic, according to Morningstar, Inc. forecasts. Most of the leading economies in the world are launching large-scale programs to provide financial assistance to businesses as a compensation for wages and salaries paid to their employees. A number of developing countries use traditional monetary measures in the form of reduced key rate, increased standing facilities corridor width, and other measures designed to boost liquidity in the money market.