The COVID-19 pandemic triggered the largest global economic crisis in more than a century. In 2020, economic activity contracted in 90 percent of countries, the world economy shrank by about 3 percent, and global poverty increased for the first time in a generation. Governments enacted a swift and encompassing policy response that alleviated the worst immediate economic impacts of the crisis. However, the government response also exacerbated a number of economic fragilities.
World Development Report 2022: Finance for an Equitable Recovery examines the central role of finance in the economic recovery from the pandemic. It highlights the consequences of the crisis most likely to affect emerging economies, and advocates a set of policies to mitigate the interconnected financial risks stemming from the pandemic and steer economies toward a sustainable and equitable recovery.
