Recessions have a permanent negative effect on growth

Recessions, like the one following the 2008-2009 crisis, have permanent negative effects on growth, since: Companies disappear; The increase in unemployment destroys human capital; Productive capital is lost for good due to the fall in investment that is not recovered; Public debt ratios rise. We show these different effects in the case of OECD countries. The coronavirus crisis is going to sharply reduce global growth in the first half of 2020: it will therefore result in a permanent loss of global growth .