Deciphering the Economic Upheaval of the Covid-19 Crisis

Understanding the Economic Shock of the Covid-19 Crisis 21 May 2020 --- Predicting the path ahead has become nearly impossible, but we can speculate about the size and scale of the economic shock. Economic contagion is now spreading as fast as Covid-19 itself. Social distancing, intended to physically disrupt the spread, has severed the flow of goods and people, stalled economies, and is in the process of delivering a global recession. Predicting the path ahead has become nearly impossible, as multiple dimensions of the crisis are unprecedented and unknowable. Pressing questions include the path of the shock and recovery, whether economies will be able to return to their pre-shock output levels and growth rates, and whether there will be any structural legacy from the coronavirus crisis. This Explainer explores several scenarios to model the size and scale of the economic shock and the path ahead. Based on the HBR article by Philipp Carlsson-Szlezak, Martin Reeves and Paul Swartz --------------------------------------------------------------------- At Harvard Business Review, we believe in management. If the world’s organizations and institutions were run more effectively, if our leaders made better decisions, if people worked more productively, we believe that all of us — employees, bosses, customers, our families, and the people our businesses affect — would be better off. So we try to arm our readers with ideas that help them become smarter, more creative, and more courageous in their work. We enlist the foremost experts in a wide range of topics, including career planning, strategy, leadership, work-life balance, negotiations, innovation, and managing teams. Harvard Business Review empowers professionals around the world to lead themselves and their organizations more effectively and to make a positive impact. Sign up for Newsletters: https://hbr.org/email-newsletters Follow us: https://hbr.org/ https://www.linkedin.com/company/harvard-business-review/ https://www.facebook.com/HBR/ https://twitter.com/HarvardBiz https://www.instagram.com/harvard_business_review ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Learn more about your ad choices. Visit megaphone.fm/adchoices