Unarguably, the two top global economy experts – Joseph Stiglitz and Nouriel Roubini – predict tough economic outlook. Roubini says post covid growth would be anemic while Stiglitz wants governments to ensure public sector program as long as needed.
Stiglitz worries over negative supply shocks, excessive money creation, deglobalisation, government response and eventually, “inflation genie will get out of the bottle”. Roubini is apprehensive over technological war between the US & China impeding growth prospects, globally.
Both the economist worry about the impact of automation and robotics in next cycle keeping the unemployment rate higher. Rising savings rate, deferred consumption & social inequalities would be hallmark of post covid world. For solutions, the economics advocated green transition, infrastructure improvement, better schooling & “those wanting a job, getting a job”.
This is a message for Pakistan: Focus on jobs, invest in people’s education, infrastructure, renewable economy, deleverage, expand export base, venture into value adding technology, contain inflation, improve taxes & business climate.