Earlier this year, The Adecco Group released a report analysing the government responses of 12 countries, including the UK, USA, Germany, and France, outlining which policies were most successful and which were not.
The conclusions drawn from the report pointed to the fact that the size of the stimulus package and effective implementation of short-term work programmes have had the largest positive impact on the countries’ ability to mitigate the economic damage caused by coronavirus.
We have now extended this study to the Asia Pacific region, monitoring the policy responses and economic implications of 12 countries such as India, South Korea, Australia and New Zealand.
Based on recent IMF forecasts and available statistics, we measured the economic cost of the policy responses through several macroeconomic indicators, namely: GDP, unemployment rate, stock market index, Consumer Confidence and Purchasing Managers’ Index (PMI). As the effects of the government measures emerge, our data points to some interesting conclusions:
#1. A large economic stimulus combined with widespread testing and tracing is most effective as it helps:
maintain public confidence necessary for economic activity
countries rely less on severely restrictive measures such as full population confinement, reducing the impact on the economy
minimize business disruptions as they can impose restrictions catered to their circumstances, instead of implementing a full shut-down of operations
minimize the loss of working hours
create temporary employment opportunities in the testing and tracing facilitation process