How can a loss of growth and economic vigour be avoided after a recession?
Past recessions (2000-2001, 2008-2009) were followed by a decline in potential growth and a loss of economic vigour. These developments resulted from a loss of productive capital (due to corporate bankruptcies and declining investment) and a loss of human capital (due to a lasting rise in unemployment). We can therefore expect the COVID crisis to have the same effects, especially as the distortion of the economy's sectoral structure will exacerbate the problem of loss of human capital and skills obsolescence. So how is it possible to return to vigorous economies after the COVID crisis? This would require: Supporting corporate investment (tax incentives, co-financing of investments in the industries of the future between the government and companies, increasing companies' equity); Adapting skills to the economy’s new needs with an efficient training system; Supporting the emergence of companies in high-growth business sectors that are going to become large.