The COVID-19 pandemic has dealt with the most severe blow to the global economy since 1929, with devastating, long-lasting effects on government balance sheets, according to a blog for World Bank Blogs.
While the impact of the pandemic has been unprecedented in scale and type, the systemic crises stemming from it are likely to happen more often in our modern, interconnected world. COVID-19 reminds us that shocks can cascade and compound in complex ways, with broad fiscal, economic, financial and social implications.
Understanding this trend is especially important considering the looming threat of climate change. In a recent report, the World Meteorological Organization reminded us of the “relentless” intensification of the climate crisis, with a record-breaking number and intensity of extreme weather events in 2020, along with the compound climate, health, and economic crises experienced in many countries.