Report
Economy and health: Complementarity, not conflict
The COVID crisis has given rise to the idea there is a conflict between the economy and health: introducing restrictive measures (curfews, lockdowns, shutdown of some activities and businesses, etc.) to curb the number of COVID cases is said to have an economic cost, meaning there is a trade-off between the health of the population (number of infections, deaths) and support for the economy. In this Flash we set out to show that on the contrary, health and the economy are complementary: the countries with a high number of cases (relative to the population) are also those that have lost a lot of GDP and have had to increase their fiscal deficit considerably to stimulate economic activity. Conversely, the countries that have had few cases have not lost much production. This stems from the fact that when the pandemic spirals, both the economy is disrupted and highly severe public health measures end up needing to be introduced.
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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