Assessment of Green Recovery Plans After COVID-19

COVID-19 is going to result in a substantial economic cost, in terms of both GDP and lost jobs. In most countries, the economic recovery will not be immediate and much of the lost output will never be made up. The model results presented in this report suggest that labour markets may not start to recover until the mid-2020s.

 

This report assesses two recovery plans that could boost both GDP and protect jobs. The first plan follows a ‘return to normal’ approach by reducing VAT rates and encouraging households to resume spending. The second plan is a ‘Green’ Recovery Plan that aims to boost economic activity while simultaneously reducing CO2 emissions.