What is a realistic estimate on the global cost of the covid 19 pandemic?
The COVID-19 pandemic has had a profound impact on the global economy, and estimating the exact cost is challenging due to its multifaceted nature and varying effects on different sectors and countries. However, several studies and estimates have attempted to quantify the economic impact of the pandemic.
The International Monetary Fund (IMF) estimated that the global economy contracted by 3.3% in 2020, resulting in a loss of approximately $22 trillion in global output compared to the pre-pandemic baseline. The IMF also projected that the cumulative loss in global output between 2020 and 2025 would be $28 trillion, equivalent to the size of the entire economy of the United States.
Other estimates suggest that the pandemic could cost the global economy between $8.1 trillion and $15.8 trillion in 2020 and 2021. The World Bank estimated that the pandemic could push up to 115 million people into extreme poverty in 2020, the first increase in global poverty in more than two decades.
Moreover, the pandemic's cost is not limited to the economic impact. The pandemic has also caused a significant loss of human life and has resulted in immeasurable social and psychological impacts.
In summary, the cost of the COVID-19 pandemic is significant and multifaceted, encompassing economic, social, and human losses. While it is challenging to estimate the exact cost, it is clear that the pandemic has caused widespread and profound impacts across the globe.