The long reach of COVID-19: multilateral policy priorities to limit persistent divergences

Abstract

After a synchronized deep downturn in 2020, an uneven global recovery is underway. Differences in vaccine access and the size of policy support have shaped cross-country divergences in the rebound. The disparities in the strength of recovery are expected to persist into the medium term. A concerted multilateral effort is needed to limit these divergences, including through accelerating global access to vaccines, investing in climate change mitigation and adaptation, and ensuring financially vulnerable economies have access to international liquidity.