Productivity in the Time of COVID-19 : Evidence from East Asia and Pacific
Firms in the East Asia and Pacific (EAP) region have been hit hard by the COVID-19 (coronavirus) pandemic, with dramatic and widespread falls in sales and employment. Firm sales in some EAP countries were 38 to 58 percent lower in April or May 2020...
| Main Authors: | , , , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/577501619186435038/Productivity-in-the-Time-of-COVID-19-Evidence-from-East-Asia-and-Pacific http://hdl.handle.net/10986/35528 |
| Summary: | Firms in the East Asia and Pacific (EAP)
region have been hit hard by the COVID-19 (coronavirus)
pandemic, with dramatic and widespread falls in sales and
employment. Firm sales in some EAP countries were 38 to 58
percent lower in April or May 2020, compared to the same
month in the previous year. Small and medium-sized
enterprises (SMEs) have been particularly affected. The
pandemic will have a lasting impact on productivity growth
as firm indebtedness and increased uncertainty inhibit
investment, and firm closures and unemployment lead to a
loss of valuable intangible assets. Support for firms is
needed but must be based as far as possible on objective
criteria, related not only to past performance or current
pain but to the potential for firms, including new firms, to
thrive in the future. To avoid unduly prolonging assistance,
governments should build exit strategies into the design of
support measures and commit to phasing support out by
linking it to observable macroeconomic indicators of recovery. |
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