THE COVID-19 PANDEMIC AND ITS IMPACT ON THE GLOBAL ECONOMY

Abstract

Annotation: The COVID-19 pandemic was a powerful shock to the world community and led to a sharp downturn in the economies of many countries around the world. According to the baseline forecast, global GDP is expected to contract by 5.2 percent in 2020 - the deepest decline in the global economy in decades. The pandemic triggered the deepest recession in the global economy in decades. And while the final consequences are unclear, the pandemic will lead to recession in the vast majority of emerging market and developing countries. It will also have long-term negative impacts on labor productivity and potential output. The priority strategic tasks at this stage are mitigating the consequences for people and reducing economic damage in the near future. As the crisis eases, a strong commitment to sustainable policies and necessary reforms will need to be implemented to strengthen long-term prospects. Special meaning. Some regional economies before the pandemic relied on short-term capital inflows to finance high current account deficits. The COVID-19 pandemic has led to a sharp depletion of foreign exchange reserves, making economies more vulnerable to capital outflows while limiting the ability of central banks to cushion the effects of further negative external shocks. The protracted nature of the pandemic or a sharp revaluation of investor sentiment, caused, in particular, by concerns about asset quality, could lead to a cascade of defaults and an increase in problem loans. f will have coordination and cooperation on a global scale.