The new European Investment Bank (EIB) COVID-19 Economic Vulnerability Index examines which countries are the most vulnerable to a virus such as the COVID-19 and which countries should take the most stringent precautions to prevent the spread of such a virus. It is the only report currently available that takes a closer look at how developing countries are affected by the crisis.
The index covers countries outside the European Union and highlights the regions that need the most help. It takes into account risk factors such as the quality of healthcare, age of the population and structure of the economy – including reliance on tourism, remittances, commodity exports, global value chains, capacity of the countries to implement countercyclical financial policy, strength of the banking sector, and more.
The index draws on both publicly available and proprietary data, but does not reflect the evolving policy responses in each country or the way the epidemic will unfold. Equally vulnerable countries may be impacted differently depending on the policy responses and the development of the epidemic.
Aligned with the EU's Team Europe response to ease the negative economic impact of the COVID-19 in non-EU economies, the EIB is committed to helping those countries hardest hit by the crisis. The report therefore focusses on regions outside the EU.
“Amidst the uncertainty during this pandemic, unfortunately one thing has become clear: the virus will have a harsh and direct impact on growth and jobs globally. It is a crisis like no other,” said EIB Vice-President Andrew McDowell. “The new EIB index of countries outside the EU not only shows which countries might be impacted the most economically but also what factors help to mitigate the economic fallout of COVID-19. Guided by these insights we will continue – as the EU bank and leading development institution – to reach out to those worst hit to strengthen their resilience and to fight for a smart, green recovery.”
“This crisis is unprecedented in terms of the global and synchronised nature of the impact: nearly all countries and regions of the world are affected. For all or most of these countries, it is one of the most severe blows to growth on record,” said Debora Revoltella, EIB Chief Economist. “This index is one small step towards better understanding the crisis. It assesses the economies of countries around the world, to single out those that are more vulnerable/resilient to the specific features of this crisis.”
Press release by EIB
Publié le 01 septembre 2020