Weakening growth potential
The pandemic will likely deepen the expected slowdown in major drivers of growth over the next decade, unless a comprehensive package of policy reforms is enacted to boost growth.
Downgrades in long-term growth prospects
Past recessions, e.g. the global recession following the global financial crisis more than a decade ago, were followed by several years of downgrades in long-term growth prospects.
Persistent income losses
Reforms to boost growth prospects
A comprehensive policy effort is needed for a recovery that reverses the damage from the pandemic and builds back better. In the past, investors have recognized and anticipated the growth dividends of institutional reforms by upgrading their long-term growth forecasts.
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