‘Locking down an economy creates insolvency’ – The coronavirus’ impact on companies and jobs
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Call it the “great lockdown”, the “coronavirus recession” or another moniker – whatever your label, the facts are clear: this unprecedented pandemic is having an unprecedented impact on the private sector.
While the full scale of the damage to companies and jobs is still being assessed, the International Finance Corporation’s Stephanie Von Friedeburg says: “developed country or a developing country, locking down an economy creates insolvency”.
“What we're going to see is a rise in unemployment and a loss of jobs. Liquidity issues at the firm level. And the longer the lockdown lasts, the more probability of insolvency”.
We hear from Stephanie about her plans to support the private sector during the COVID-19 response and recovery.
Plus, Raka runs us through the latest forecasts for the global economy from our colleagues behind the Global Economic Prospects.
All that and more from the World Bank Group in Washington, DC and around the world!
And as always, we welcome your feedback, questions, and ideas. Email us using TheDevelopmentPodcast@worldbank.org.
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All this definitely has major consequences, especially when it comes to businesses facing insolvency. Many companies struggle to stay afloat without regular cash flow, and job losses become inevitable. It's important for businesses to have strong support systems in place during such times. Services like hanmi bank customer service https://www.pissedconsumer.com/company/hanmi-bank/customer-service.html can be very important for companies that need financial assistance or restructuring options. The economic impact of lockdowns shows just how interconnected everything is, from businesses to employment.