The stigma of the pandemic in labor and the economy

Experts at the 7th Delphi Economic Forum spoke about the effects of the pandemic on the world economy. Megan Greene, Senior Fellow, M-RCBG, Harvard Kennedy School, estimated that we will see an increase in productivity, as many companies digitized their activities during the lockdowns, while many European countries intend to use the relevant funds for this the goal.

At the same time, he referred to the key role played by governments in taking responsibility, which reassured central banks, although he noted that the debt has increased significantly during this period, which he estimated would lead to a large increase in interest rates.

Ms. Greene also spoke of a change in the nature of work, estimating that hybrid models will be consolidated, and not just in the United States. He even pointed out the differences between the US and Europe, as on the other side of the Atlantic there were many redundancies due to the pandemic, however, although at first it seemed like a successful policy, then the large number of unemployed was found. At the same time, labor relations were maintained in the Old Epirus. Finally, he said that in the US there have been no effective measures to change the behavior of the people, except for fear, noting that everyone is responsible for their own choices.

For his part, David Lubin, Associate Fellow, Global Economy and Finance Program, Chatham House, expressed concern that the pandemic and the war in Ukraine could lead to a shrinking trade. “We will experience greater introversion in the US and the EU, so there will not be enough trade to lead to increased growth,” he said.

Especially for emerging economies, he stressed that the biggest problem is the lack of fiscal space, which is why they responded to the pandemic with less generous support packages, noting, however, that even if resources were available, they did not plan to protect the workforce. their. As he said, the combination of global protectionism with resilience of the supply chain and war creates a hostile environment for these economies.

Specifically for the role of China, he noted that its opening to the world will inevitably occur in ’22, however the lifting of the zero covid policy will lead to the death of citizens.

The discussion was moderated by Creon Butler, Director of the Global Economy and Finance Program at Chatham House.