TY - BOOK ID - 133955724 TI - Addressing the Pandemic's Medium-Term Fallout in Australia and New Zealand. PY - 2020 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Business and Economics KW - Macroeconomics KW - Economics: General KW - International Economics KW - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) KW - Economic Growth and Aggregate Productivity: General KW - Measurement of Economic Growth KW - Aggregate Productivity KW - Cross-Country Output Convergence KW - Economywide Country Studies: Oceania KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Financial crises KW - Economic sectors KW - Currency crises KW - Informal sector KW - Economics KW - Pandemics KW - COVID-19 (Disease) KW - Business and Economics. KW - Macroeconomics. KW - Economics: General. KW - International Economics. KW - Economic Growth and Aggregate Productivity: General. KW - Measurement of Economic Growth. KW - Aggregate Productivity. KW - Cross-Country Output Convergence. KW - Economywide Country Studies: Oceania. KW - Economic & financial crises & disasters. KW - Economics of specific sectors. KW - Financial crises. KW - Economic sectors. KW - Currency crises. KW - Informal sector. KW - Economics. KW - Economic aspects. UR - https://www.unicat.be/uniCat?func=search&query=sysid:133955724 AB - While the world is focused on addressing the near-term ramifications of the COVID-19 shock, we turn attention to another important aspect of the pandemic: its fallout on medium-term potential output through scarring. Taking Australia and New Zealand as examples, we show that the pandemic will likely have a large and persistent impact on potential output, broadly in line with the experience of advanced economies from past recessions. The impact is driven by employment, capital stock, and productivity losses in the wake of an unprecedented sectoral reallocation, hightened uncertainty, and reduced migration. Maintaining fiscal and monetary policy support until the recovery is firmly entrenched and putting in place a strong structural policy agenda to counter the pandemic’s adverse effects on medium-term potential output will be important to support standards of living and strengthen economic resilience in case of renewed shocks. ER -