HONG KONG – As governments worldwide confront the terrible choice between saving lives from COVID-19 and protecting people’s livelihoods, economic indicators highlight the intensity of the dilemma. Unemployment has skyrocketed, trade has plunged, and the global economy is facing its worst downturn since the Great Depression. There is only one way to limit the pandemic’s economic fallout: Sino-American cooperation.
Since the outbreak of COVID-19 in late December 2019 in Wuhan, China, experts have speculated what its long-term effects on global health, the global economy, and social welfare will be. The human lives lost to the pandemic have been colossal. The economic impact of COVID-19 paints a very dreary picture: rising unemployment, crashing oil prices, and increasing risk of recession, with the International Monetary Fund (IMF) predicting that the global economy will shrink by three percent in 2020. Bloomberg Economics’ analysis predicts that, in the worst case, COVID-19 could cost the global economy $2.7 trillion in global output, recessions in the US, Euro-area, and Japan, and the slowest growth on record in China.