{
  "title": "The Economic Effects of COVID-19 Containment Measures",
  "publication": "IMF Working Papers, August 7, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2020/08/07/the-economic-effects-of-covid-19-containment-measures-49571",
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  "summary": "Containment measures are crucial to halt the spread of the 2019 COVID-19 pandemic but entail large short-term economic costs.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Containment measures are crucial to halt the spread of the 2019 COVID-19 pandemic but entail large short-term economic costs.\n- The paper quantifies these effects using daily global data on real-time containment measures and indicators of economic activity."
    },
    {
      "heading": "Data and indicators",
      "content": "- Daily global data on real-time containment measures.\n- Indicators of economic activity used:\n  - Nitrogen Dioxide (NO2) emissions\n  - Flights\n  - Energy consumption\n  - Maritime trade\n  - Mobility indices"
    },
    {
      "heading": "Main findings",
      "content": "- Containment measures have had, on average, a very large impact on economic activity—equivalent to a loss of about 15 percent in industrial production over a 30-day period following their implementation.\n- Fiscal and monetary policy measures used in response to the crisis were effective in mitigating some of these economic costs.\n- Workplace closures and stay-at-home orders are more effective in curbing infections but are associated with the largest economic costs.\n- Easing of containment measures has led to a pickup in economic activity, but the effect has been lower (in absolute value) than that from the tightening of measures."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Deploy fiscal and monetary policy measures to mitigate the short-term economic costs of containment measures, as evidence indicates these policies can be effective.\n- Recognize trade-offs between public-health effectiveness and economic costs: workplace closures and stay-at-home orders reduce infections most effectively but impose the largest economic costs.\n- Consider the asymmetry in effects: tightening containment yields larger absolute economic impacts than easing, implying cautious calibration of both implementation and removal of measures."
    },
    {
      "heading": "Key statistics and metadata",
      "content": "- Estimated economic impact: loss of about 15 percent in industrial production.\n- Impact horizon reported: 30-day period following implementation.\n- Publication: IMF Working Papers, Issue 158, Working Paper No. 2020/158.\n- Authors: Pragyan Deb, Davide Furceri, Jonathan David Ostry, Nour Tawk.\n- Date: August 7, 2020.\n- Pages: 44.\n- DOI: https://doi.org/10.5089/9781513550251.001\n\nSource: The Economic Effects of COVID-19 Containment Measures, IMF Working Paper (August 7, 2020).\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2020/08/07/the-economic-effects-of-covid-19-containment-measures-49571"
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    "Authors: Pragyan Deb, Davide Furceri, Jonathan David Ostry, Nour Tawk",
    "Published: August 7, 2020",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513550251.001",
    "Containment measures are crucial to halt the spread of the 2019 COVID-19 pandemic but entail large short-term economic costs.",
    "The paper quantifies these effects using daily global data on real-time containment measures and indicators of economic activity.",
    "Daily global data on real-time containment measures.",
    "Indicators of economic activity used:",
    "Containment measures have had, on average, a very large impact on economic activity—equivalent to a loss of about 15 percent in industrial production over a 30-day period following their implementation.",
    "Fiscal and monetary policy measures used in response to the crisis were effective in mitigating some of these economic costs.",
    "Workplace closures and stay-at-home orders are more effective in curbing infections but are associated with the largest economic costs.",
    "Easing of containment measures has led to a pickup in economic activity, but the effect has been lower (in absolute value) than that from the tightening of measures.",
    "Deploy fiscal and monetary policy measures to mitigate the short-term economic costs of containment measures, as evidence indicates these policies can be effective.",
    "Recognize trade-offs between public-health effectiveness and economic costs: workplace closures and stay-at-home orders reduce infections most effectively but impose the largest economic costs.",
    "Consider the asymmetry in effects: tightening containment yields larger absolute economic impacts than easing, implying cautious calibration of both implementation and removal of measures.",
    "Estimated economic impact: loss of about 15 percent in industrial production.",
    "Impact horizon reported: 30-day period following implementation.",
    "Publication: IMF Working Papers, Issue 158, Working Paper No. 2020/158.",
    "Authors: Pragyan Deb, Davide Furceri, Jonathan David Ostry, Nour Tawk.",
    "Date: August 7, 2020.",
    "Pages: 44.",
    "DOI: https://doi.org/10.5089/9781513550251.001",
    "**Working Paper**"
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