What does the COVID Economic Recovery Index measure?
The COVID Economic Recovery Index assesses the characteristics countries have in place that will help them weather the crisis and recover. These factors were identified based on theoretical and empirical research about economic growth, crisis resilience and pandemic response.
Other factors will play a role in how countries weather the crisis and recover, such as policy choices, of which many are novel approaches, changes in consumer behaviour which may be durable, and last but not least how the COVID virus spreads and how rapidly a cure or vaccine can be found.
The index covers 122 countries, which were selected based on data availability. It is the first global assessment of its kind.
How was the index built?
The Index uses a custom-built data set combined in a sophisticated analytical framework to measure three overarching elements: 1) health system resilience 2) countries’ capacity to absorb the economic shock and 3) economic resilience. These elements are measured through 15 sub-categories that allow users to analyze the performance of each country in detail. The index structure is shown below.
Over 100 indicators from renowned sources including the IMF, ILO, WHO, World Bank, and the World Economic Forum were used to compile the index. They were checked for accuracy and reliability and the most recent available indicators were used, mostly for the years 2018-2020.
How can the COVID Economic Recovery Index be used?
The study identifies countries at risk of a prolonged recession, informs exit and investment strategies, and helps countries takes measures to strengthen resilience to future shocks. It is supplemented by country profiles for each of the 122 economies.