Scale up the relief package to 5-6% of GDP
- Fiscal measures must be accompanied by structural reforms for the country to guard against negative effects of the covid-19 crisis
The covid-19 crisis is a bolt from the blue. There is no precedent of this particular strain of coronavirus, and hence, any projections of its impact can just be intelligent guesses. Predictive numbers need to be relied upon with great caution. One has to keep a very close watch on how the crisis unfolds and keep tinkering with different actions as facts regarding the virus trajectory, the effectiveness or otherwise of containment efforts, and reactions of economic actors become clearer. The crisis would, as any crisis does, affect both the supply and demand sides of the economy and stress not only the financial markets but the socio-economic fabric of society.
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