Economic downturns can cause serious damage, and their effec...

Economic downturns can cause serious damage, and their effects are usually long-term. Businesses go out of business, investment expenses shrink, and over time, the unemployed may lose their skills or motivation to choose a career.

But the economic downturn brought about by the COVID-19 pandemic is no ordinary recession. Compared to the previous global crisis, the current economic contraction was sudden and profound — according to quarterly data, the decline in global output in half of the time was about three times that of the global financial crisis.

Up to now, thanks to unprecedented policy actions, countries have largely avoided systemic financial pressure and the long-term economic damage it may cause. However, the path to economic recovery still faces challenges, especially in countries with limited fiscal space. The differentiated impact of the pandemic has made economic recovery more difficult