The Council of Arab Economic Unity sets a vision for the economic situation for the post-Corona period: the global economy may incur losses of up to $82 trillion over five years

Date: 23 - 07 - 2020

Cairo.. The Council of Arab Economic Unity of the League of Arab States discussed the economic situation during the post-coronavirus (Covid 19) period, through a book that was issued entitled “The Global Economy between the Hammer of Corona and the Anvil of Crises.”

The book dealt with the expectations of international institutions for the performance of the global economy; Which ranges from estimates of a contraction of (4.9%) to (-8.8%) during the year 2020, and potential losses for the global economy may range between 3.3 trillion dollars in the case of a rapid recovery, and 82 trillion dollars in the scenario of an economic recession.

The book identified the most important features of the current economic predicament represented in: the inflexibility and fragility of the current economic system, the assumptions on which the economic theory was based and its inability to deal with challenges, foremost of which are uncollectible debt crises at the level of individuals, institutions or countries, where debts exceed The world is three times the gross domestic product, and its growth rate is twice the global growth rate.

The book also touched on some of the facts that are pushing for major transformations in the global economic system, such as the Fourth Industrial Revolution and social variables in nature and behavior as a result of the impact of visual media and social media platforms, and the tendency towards saving and lack of spending as a result of interactions between the problems of closure and travel ban.

The book laid out a number of supposed features of the new economic system during the post-Covid 19 period, as follows:The growing economic role of the state, the increasing importance of the digital economy as a major player in moving and operating markets, comprehensive employment to absorb and employ community members and reduce unemployment rates, the emergence of the concept of economic value as a measure of economic benefit provided by goods and services, and low interest rates in an effort to attract new investments and push the wheel of economic growth The decline and disappearance of financial stock exchanges, the introduction of modern alternatives and various systems for financing projects and attracting investments, the continuation of globalization with the growth of the telecommunications infrastructure globally, and the redefinition of individual ownership with the possibility of new concepts for it that guarantee the achievement of the interests of societies and prevent the abuse of that freedom, and the retreat of areas of individual freedom with Expectations of the tendency to focus on human happiness rather than freedom, and the role of peoples’ health immunity status in determining their economic status, which is considered one of the most recent axes in economic concepts, as governments are expected to allocate independent budgets fromIn order to develop this aspect, and work on its safety.

The book also emphasizes that the Covid-19 epidemic will accelerate the beginning and emergence of a new economic order, and that with each new, opportunities must coincide with challenges. And that all the current data indicate that the new world will witness a new political geography that will require countries to strengthen cooperation for more economic integration to ensure national interests, which will at the same time raise the intensity and fierceness of competition as developed countries tend to revitalize their economies and restore their leadership in the economic arena.

Book download link