Locking down early may help economies recover faster, says IMF

Strict, early lockdowns may be less economically damaging than voluntary measures because they reduce infection rates more quickly and pave the way for faster recoveries, the International Monetary Fund has said. By cross-referencing jobs and mobility data with health and economic figures for 128 countries, the fund showed that lockdowns caused more short-term harm than voluntary restrictions but may have “positive overall effects on the economy” by allowing a broader and quicker economic reopening. Central to the analysis was the discovery that “lockdowns and voluntary social distancing played a near comparable role in driving the economic recession”, particularly in advanced economies where people were able to work from home. “Addressing health risks appears to be a pre-condition to allow for a strong and sustained economic recovery.'