Analysis & Opinions

The Week in COVID-19 and Economic Diplomacy: 'Worsening Global Projections'

| July 10, 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

  • The U.S. withdraws from the WHO and threatens to deport international students if universities are fully online. Debates about the most effective stimulus policies continue as the country surpasses 3 million coronavirus cases. 
  • The EU has slashed expectations of growth, projecting that the economy will contract 8.3 percent instead of the previously estimated contraction of 7.4 percent. Meanwhile, the OECD projects that advanced economies’ unemployment rates will reach 9.4 percent by the end of the year.
  • Developing economies may owe less debt to China than previously thought. And Argentina is undertaking one of the largest debt restructurings in the history of emerging markets.

U.S. Developments

As coronavirus cases continue to surge throughout the United States, the Trump administration recently announced it had begun the process to withdraw from the World Health Organization. The United States has struggled to respond to the pandemic as states balance economic recovery against health risks. 

European Developments

As the July 17-18 summit of leaders to discuss the European recovery fund approaches, the European Union has slashed its projections for economic growth. While some nations hard hit by the pandemic have agreed to accept certain conditions in order to receive funds from the EU, others have bristled against them.

Emerging Markets

Odds and Ends

For more information on this publication: Belfer Communications Office
For Academic Citation: Suh, Hannah.“The Week in COVID-19 and Economic Diplomacy: 'Worsening Global Projections'.” , July 10, 2020.

The Author