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Rebound Plan for Financial Stability Post COVID-19 in EMDE Challenged by Informal Sector

If the reports published recently by World Bank financial analysts are to be believed, the global economy is en route a massive dip in the coming months and is anticipated to hit its bottom low with 5.2% depreciation on the back of stark economic dysfunctionality to suppress the implications of global pandemic struck by the Chinese virus, novel COVID-19. According to financial stalwarts and economic experts, the economic recession struck by COVID-19 is the worst of its kind, and is just behind the devastating financial crisis of 1870.In the words of David Malpass, President, World Bank, the impact of the pandemic on economic growth is likely to hit hard , in terms of range and speed, pushing the economy towards a sluggish recovery mode, forcing policymakers to undertake extensive brainstorming sessions to make a major comeback.
The chances for a sturdy and robust comeback in the emerging economies is particularly challenging to achieve as a chunk of the employment lies in informal sector which is not taxable and is in most cases touted as disorganized and hard to manage. IN industrialized and matured developed countries the economic scenario is rather dismal as all major and significant economies activities in these countries are likely to take a retreat and shrink by over 7% in 2020 on the back of struggling and sluggish finance and trade activities, deplorable demand and supply chain distribution and minimalistic cross border trade options. Likewise, EMDE (Emerging Markets and Developing Economies) are also anticipated to take a backseat, shrinking at 2.5% the first of its kind in six decades.
Continued melt down of the per capita income is likely to spur stark poverty in emerging economies, countries where informal sector employment is enormously high. Dismal performance in sectors such as hospitality, commodity exports, cross border trades is further likely to enhance difficulties in carving adequate comeback plans.