The effects of COVID-19 on global economic output and sustainability: evidence from around the world and lessons for redress

Abstract The coronavirus pandemic has ravaged the world, and its impact has permeated virtually all facets of society. The next wave of the COVID-19 shock will trigger another or more protracted recession in many countries, with annual growth projected to fall below recessionary thresholds. The resulting hit to global income as compared with forecasts for 2020 and 2021 will be enormous. The situation will be more precarious for developing countries across different income categories that are struggling with unsustainable debt burdens. Firms should implement business-continuity plans and ensure readiness for business constraints by prioritizing critical business activities and creating contingency plans for disruption. Governments should implement support programs to avert these difficulties. The shock to labor supply in each country should be managed in a manner that does not leave a post-COVID-19 world more disastrous. Close cooperation among all relevant actors is key to containing COVID-19 and mitigating its economic repercussions on countries around the globe. In addition, better waste management and commitment to climate change must take center stage to reduce the environmental impacts of COVID-19 on countries and the world.