Why Covid vaccine is key to economic recovery – how UK support plan is flawed

26th October 2020 (Last Updated October 26th, 2020 11:13)

26 October

As second wave of Covid-19 infections continues to impact countries across the world, the possibility of a V-shaped recovery for the global economy remains weak until the availability of a vaccine.

China, however, has managed to move towards V-shaped recovery due to the early containment measures adopted.

Ludovic Subran, group chief economist at Allianz, shared an article on how China is on the way to achieving a V-shaped recovery even in the absence of a fully tested vaccine.

China’s economy expanded by 4.9% in the third quarter, while other countries were trying to manage the Covid-19 pandemic.

The article noted that the measures undertaken by China to control the virus played a key role in enabling activity to return to normal within few months.

Further, the country is insulated from fluctuations in the global demand compared to other countries.

The article also highlighted that until the global availability of a vaccine, other countries will struggle to achieve the China’s growth.

Meanwhile, Colin Williams, professor of public policy at the University of Sheffield, shared an article on analysis conducted by Resolution Foundation, a thinktank, on the flaws in UK Chancellor Rishi Sunak’s $16.55bn (£12.7bn) self-employment income support scheme (SEISS).

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