The Economic Cost of the current Pandemic Forces Prevention
The Economic Cost of the current
Pandemic Forces Prevention
Clinical Services Department MC-21
Marileny Lugo Cacho
Chief Operating Officer, COO MC-21 LLC
There is an unusual consensus from all governments, economists, and financiers that the pandemic economic impact has been devastating. Stipulated the disaster, the focus has now turned to avoiding a repeat of this impact on the next pandemic or health emergency.
The World Health Organization (WHO) summarizes its objectives in three essential points: the pandemic should motivate us to reenforce efforts to achieve an ostensible development; we must prepare for the next pandemic; and ensure equitable access to diagnostic tests, treatments and vaccines.
The key to the end of the pandemic and global economic recovery, according to WHO General Director Tedros Adhanom Ghebreyesus, is to vaccinate a number of people in all countries, not necessary all people in some countries. To this end, we would need at least 2 billion doses of vaccines available by the end of 2021. At present $3 billion have been invested, only a tenth of the $35 billion needed to accelerate the development of coronavirus vaccines.
Although the International Monetary Fund (IMF) painted a grim global economic landscape earlier this year, recently its spokesman Gerry Rice  said it was less obscure than anticipated only because of the good performance of China’s economy and a few other advanced countries, although it remains challenging for the rest of the world.
The IMF will release its World Economic Outlook report on October 13. Last June, the institution estimated that the world economy would contract by 4.9%, a figure higher than the expected 3% drop in April.
In Latin America and the Caribbean, an economic contraction of 9% is expected this year, which means the largest recession in the region, according to IMF’s Western Hemisphere Department’s director Alejandro Werner.
Although the exact figures may vary, the truth is that more developed countries continue to record historical economic declines. To better illustrate this, the Organization for Economic Cooperation and Development (OECD), which brings together the most developed nations,  noted that the new record (6.9%) of unprecedented fall of the real gross domestic product Gross Domestic Product (GDP)  of the world’s top 20 economies is much higher than in early 2009 (1.6%) during the worst moment of the last major global financial crisis.
China is the only G20 country with growth (11.5%) in the second quarter of 2020, confirming its recovery from the impact of the early epidemic. Not so for countries where GDP fell more drastically: India (-25.2%), United Kingdom (-20.4%), Mexico (-17.1%), South Africa (-16.4%), France (-13.8%), Italy (-12.8%), Canada (-11.5%), Turkey (-11.0%), Brazil and Germany (-9.7% in both countries), United States (-9.1%), Japan (-7.9%), Australia (-7.0%), and Indonesia (-6.9%). In Korea and Russia, it was less (-3.2%).
Such scenario should contribute to a global understanding that health and preparedness spending is an investment in our future as opposed to repeating the current response to the pandemic disaster.
 Real GDP is the sum of all goods and services produced by a country or economy over a period at constant prices and is used to measure economic health, especially growth.