Epidemic affects labour productivity badly: World Bank

In a study conducted by World Bank it is found that epidemic leads to decline in labour productivity. Emerging Markets are worst hit.

Advertisement

There were five epidemics during the period 2000-2018: SARS (2002-03), Swine flu (2009), MERS (2012), Ebola (2014-15), and Zika (2015-16). These four major epidemics, excluding the Swine flu since it coincides with the global financial crisis to avoid compounding effects, lowered labour productivity initially by 1%, and by 4% cumulatively after three years.

As written in the World Bank report.

In Recent analysis by World Bank on effect on global productivity by epidemic , it has been founded that epidemics have lead to decline in labour productivity.

Previous Epidemics have created situation of uncertainty all over the countries which has led to fall in investment by approx 9% consecutively for three years.

We are presently in similar situation when Covid 19 has created an uncertainity worldwide which has slump down trade, foreign direct investment.

The database has been collected from 35 advanced countries and 129 emerging markets. To analyse deeply the effect of epidemics on across the whole world.

Productivity levels in emerging markets and developing economies remain less than 20% of the average in advanced economies, and only 2% in low income countries

As said by World  Bank Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu.

 

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time