Policymakers worldwide face crucial questions as they prepare for economic recovery after the Covid-19 pandemic.
Health crisis issues and economic and financial challenges have forced governments to step in with unprecedented spending. While public spending on a health crisis such as the Covid-19 pandemic is urgent and temporary, economic recovery requires investment over the longer term to boost the market and stimulate the private sector.
Recovery funding is also needed to support education and healthcare and to develop basic and technological infrastructure. The US has already spent $1.9 trillion on its stimulus programme, and it is about to allocate more, amounting to 20 per cent of US GDP in a single year. Stimulus allocations in the EU countries average 10 per cent of GDP. Other Organisation for Economic Cooperation and Development (OECD) countries that have the means to do so are doing the same thing.
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