81 days ago • Posted by William Ramstein
Tourist centric nations hurt most by pandemic. Time to revamp labor-capital divides?
Emerging markets will suffer more in the long run than most advanced economies. While GDP decline is most apparent in developed countries, other factors like labour market rigidities and limits to fiscal support hinder emerging nations most. Reliance on tourism and high unemployment in such countries hurts recovery. Similarly, countries like France that rely more heavily on tourism than say Australia could bounce back less vigorously. Countries who rely too much on tourism might diversify away towards other productive, or more capital intensive sectors (Vietnam as an example). Some will bounce back higher than others...