Analysis & Opinions

This Week in COVID-19 and Economic Diplomacy: ‘Global Worker Income Fell By 10%’

| Sep. 25, 2020

Our weekly COVID-19 and Economic Diplomacy tracker looks at policies that impact the coordination of international governments and central banks, ongoing commentary and analysis, and asks what these turbulent times mean for economic diplomacy. 

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The Highlights

  • Global worker income fell more than 10% equating to a loss of $3.5 trillion and accounting for 5.5% of global GDP. 
  • Economists warn that the U.S. is repeating the mistakes of the 2008 recession. Lack of a stimulus package is partially due to the fact that the economy has not slowed as sharply as expected.
  • The ECB urged the EU to make the recovery fund permanent. It will be a net benefit to Croatia, Bulgaria, Greece, Portugal, Spain, and Italy. The “frugal four” and Germany will lose nearly 2% of pre-pandemic GDP.
  • In an unexpected move, Turkey's central bank raised its benchmark interest rate by 2 percentage points to boost the lira. 

Global Developments

U.S. Developments

European Developments

Emerging Markets

Odds & Ends

For more information on this publication: Belfer Communications Office
For Academic Citation: Suh, Hannah.“This Week in COVID-19 and Economic Diplomacy: ‘Global Worker Income Fell By 10%’.” , September 25, 2020.

The Author