Macroeconomic shock from the COVID pandemic and its implications for a green recovery

The podcast episode discusses the macroeconomic shock caused by the COVID-19 pandemic and its relationship to arguments for investment in a green recovery. The analysis of the shock was based on IMF forecast revisions, examining the specific impacts on different countries. The researchers found that the pandemic would reduce real GDP by around 3% globally, with varying impacts on different economies. While China and other emerging Asian economies are expected to be less affected, the US, the UK, and several advanced economies will experience deeper and longer-lasting effects. It was also highlighted that no country is immune to the economic fallout of the pandemic due to global interconnections. The researchers suggested that policymakers need to manage the risks and understand the importance of comprehensive and coordinated cross-country responses to both the pandemic and future climate change-related risks.