According to International Monetary Fund , the world will face a recession worse than the 1929 Great Depression as a result of social distancing measures implemented in the majority of the countries to halt the spread of COVID-19 and which has resulted in the paralyzation of the majority of human activities.
In its World Economic Outlook report, the IMF explains that confinement will result in a 3% contraction in the world economy and will force over 170 countries into an economic recession , including Mexico, which is expected to experience a 6% contraction.
This is a new and unexpected scenario in world history because even if there have been pandemics before, which resulted in the tragic loss of human lives, halting economic activities had never been used as a measure to contain a pandemic. In the past, contagious diseases led to the temporary halt of the economy but this is the first that quarantine is used to prevent a pandemic, however, it has the same devastating results for the economy but will also help to save thousands of lives.
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Some analysts have described the world crisis caused by COVID-19 as a tsunami in slow motion. They predict some effects will become visible immediately and some will become visible in the future; therefore, one the public health crisis is over, the recovery process will be slow, especially in some countries and including Mexico , which had been previously affected by a series of negative factors that halted any possibility of economic growth . Although the majority of countries will struggle to return to normal everyday life, Mexico will have to work twice or three times more to register economic growth once again.
Therefore, we have to be ready. The ideal is for all sectors of society to unite and work together: government, the private sector, and society. Each one has to work to mitigate the effects the public health crisis will have on society. It’s time to come together amid the worst scenario faced by humanity since the two world wars that took place in the 20th century.
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