adplus-dvertising
Connect with us

Economy

Walking the Coronavirus Containment Tightrope: How Countries Balance Saving Lives and the Economy – The Wall Street Journal

Published

 on


As the world relaxes its lockdowns against the coronavirus pandemic, the early results range from fragile success to worsening crisis.

Much of East Asia and Europe has suppressed the pandemic’s first wave and is fighting to keep infections down to a manageable level. But contagion is still spreading strongly in the U.S., Latin America and India, among other places, leaving countries with a choice between the economic pain of renewed restrictions on daily life or accepting the human toll of mass infections.

The divergent experiences of reopening show some of the main lessons learned so far from fighting the coronavirus, say epidemiologists and other scientists studying the pandemic. Strict lockdowns slammed the brakes on exponentially growing virus outbreaks. Countries that locked down quickly suffered fewer deaths than countries that acted late. Timing is also proving crucial in lifting lockdowns: Infections are accelerating in countries that reopened before they had suppressed the first wave.

Above all, some countries used the weeks of lockdown better than others to develop less drastic, more sophisticated ways to fight the virus.

Grave diggers in Manaus, Brazil.



Photo:

Tommaso Protti for The Wall Street Journal

“Lockdowns work, in the sense that extreme social-distancing measures stop transmission. But they’re a short-term tactic. What you’re doing is buying yourself time,” says John Lessler, epidemiologist at Johns Hopkins Bloomberg School of Public Health. “When you reopen your economy, you have to have a strategy in place.”

Most public-health experts agree over what the strategy should look like: boost the capacity to test, trace and isolate virus carriers, and find a sweet spot for social-distancing rules in daily life that keeps infection risks low but also let the economy breathe. Nearly all governments talk in such terms, but some countries have made considerable progress, while others, including the U.S., are struggling to coordinate their efforts.

“A lot of what you see in the shape of infection curves is how well countries used the time of their lockdowns,” says Solomon Hsiang, director of the Global Policy Laboratory at the University of California, Berkeley. European countries that suppressed the first wave and have so far reopened with only limited upticks in infections “used the time to set up systems for testing and contact-tracing that can bear the weight after lockdowns,” he says. “In the U.S., we didn’t do that. We wasted the time.”

Italy, the first country outside Asia to be hit badly by the virus, reacted late and had the world’s deadliest outbreak until the U.S. overtook its death toll. But since Italy reopened in May, infections have continued to decline, to around 200 a day currently. Many of those are asymptomatic cases discovered via large-scale blood testing—detection capabilities that Italy didn’t have before.

Italy remains nervous about the danger of the virus bouncing back if people relax too much or too many cases evade its new test-and-trace systems. Several European countries have grappled with clusters of fresh infections since reopening, including Germany, Spain and Poland. The numbers remain much lower than in March and April, however.

Keeping new infections low is proving hard work everywhere. Even East Asian countries widely lauded for their robust virus-fighting capabilities, such as South Korea and Singapore, have grappled with new clusters of cases. Israel, which suppressed the first wave with a rapid lockdown, shows how quickly progress can evaporate: Suddenly resurgent infections have prompted the government to partially reverse the reopening of the economy.

Asian countries such as South Korea are widely lauded for their robust virus-fighting capabilities.



Photo:

Jean Chung for The Wall Street Journal

The slow return of international travel poses another challenge to countries that have kept domestic contagion low. Greece locked down quickly after discovering its first coronavirus cases, a reaction typical of countries that feared they lacked the health-care resources to cope with a large outbreak. Now, Greece is detecting infections among tourists, and trying to balance the health risks with the needs of its tourism-dependent economy.

Only painful options remain for countries with surging infections that have already been through economically costly lockdowns. Shutting down the economy a second time could test societies’ cohesion and financial reserves to breaking point. Developing countries that lack the social-benefit systems of West European nations already struggled to support their idled workers during the first lockdown.

SHARE YOUR THOUGHTS

Is it still possible for the U.S. to implement strategies from other countries to address the spread of the coronavirus, and should it do so? Join the conversation below.

From poorer countries such as India to the rich U.S., economic pressure on households was one of the main factors that led authorities to lift restrictions despite still-high contagion.

“The best strategy for poorer countries is to make sure that the population are taking precautions, wearing masks and doing social distancing, in order to gain time to ramp up surveillance, testing and contact-tracing capabilities,” says Swapnil Mishra, a public-health researcher at Imperial College, London.

Social-distancing circles in a park in Milan. Since Italy reopened in May, infections have continued to decline.



Photo:

Francesca Volpi for The Wall Street Journal

Mr. Mishra co-wrote one of the first peer-reviewed studies of lockdowns’ impact on contagion, using data on coronavirus deaths in 11 European countries to infer how business closures, stay-at-home orders and other measures affected the spread of the virus. The study found lockdowns sharply slowed infection rates and saved around 3.1 million lives in Europe compared with unfettered exponential outbreaks in the continent.

Mr. Hsiang’s team at Berkeley published another major peer-reviewed study on lockdowns, using econometric methods to estimate the impact on infection rates of specific social-distancing policies in the U.S. and selected European and Asian countries. The study found that infections were doubling roughly every two days, an explosive pace that was curbed by draconian policy efforts and the cooperation of ordinary people.

The problem now is how to maintain such coordinated action, says Mr. Hsiang. “It’s an endurance challenge against an invisible adversary.”

A third recent paper, a survey of data from 84 countries by researchers at the MIT Sloan School of Management, argues that societies’ motivation to maintain social distancing is the key to the next phase—and that the worst of the pandemic still lies ahead next winter. The second wave, warns the MIT study, could be concentrated in a few large countries including India and the U.S.

“The outlook for the epidemic remains grim, with most nations settling into a steady state of cases and deaths that, while below their peaks, are troublingly large,” the MIT researchers warn.

Related Video

As the coronavirus continues to spread around the globe, companies and academic labs are racing to develop a vaccine that would help society get back to normal. But there could also be costs to moving too quickly. WSJ’s Daniela Hernandez explains. Photo illustration: Laura Kammermann

Write to Marcus Walker at marcus.walker@wsj.com

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Let’s block ads! (Why?)

728x90x4

Source link

Continue Reading

Economy

Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

Published

 on

 

OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

Published

 on

 

The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

Trump’s victory sparks concerns over ripple effect on Canadian economy

Published

 on

 

As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending