The pandemic has caused the world’s economies to diverge
But its long-term impact will be even more far-reaching
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IN FEBRUARY THE coronavirus pandemic struck the world economy with the biggest shock since the second world war. Lockdowns and a slump in consumer spending led to a labour-market implosion in which the equivalent of nearly 500m full-time jobs disappeared almost overnight. World trade shuddered as factories shut down and countries closed their borders. An even deeper economic catastrophe was avoided thanks only to unprecedented interventions in financial markets by central banks, government aid to workers and failing firms, and the expansion of budget deficits to near-wartime levels.
This article appeared in the Leaders section of the print edition under the headline "Winners and losers"
From the October 10th 2020 edition
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