ECONOMY FORUM: In Germany, as in the UK, the economy is predicted to contract sharply as a result of the lockdown. But has this crisis become a convenient distraction from the deeper, structural problems of the German economy? And as the economic pain becomes clear, who will bear the brunt? Developing economies could suffer the greatest effects from the Covid-19 pandemic even though they have been little discussed in the West. They constitute a diverse range of countries, but it is possible to identify some key themes that, to a greater or lesser extent, threaten them. There are the direct effects on already hugely overstretched healthcare systems, the economic consequences of lockdowns, the impact of the slump in demand from the developed economies, and tougher financial conditions such as capital outflows and higher debt servicing costs. Daniel Ben-Ami and Sabine Beppler-Spahl discuss.
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