Mapping Global Income Support During COVID-19

Mapping Global Income Support During COVID-19

Income loss has impacted many during the COVID-19 pandemic. Unemployment, reduced hours, office closures, and business shutdowns have prompted the need for mass income support.

Globally, income from work fell $3.5 trillion in the first nine months of 2020, a change of -10.7% compared to the same period in 2019.

In the above map, Our World in Data reveals the different levels of income support provided by governments across the globe.

Income support, in this case, is defined as governments broadly covering lost salaries or providing universal basic income or direct payments to people who have lost their jobs or cannot work. Levels of income support are changing over time.

Small Government

Many world governments have provided no support when it comes to a universally applicable scheme to cover lost income in their countries.

Examples: (as of January 25th, 2021)

  • Venezuela
  • Syria
  • Belarus
  • Bangladesh
  • Cambodia

The majority of the governments providing no support are in low to lower-middle-income countries. Based on a recent report from the International Labour Organization (ILO), lower-middle-income countries have also seen the highest income losses, reaching 15.1% since 2019.

Developing countries tend to experience a significant fiscal stimulus gap, in which they do not have the capacity to cushion lost income or lost jobs. In fact, it’s estimated by the ILO that low and lower-middle-income countries would need to inject an additional $982 billion into their economies to reach the same level of fiscal stimulus as high-income countries.

A Helping Hand

There are other governments that are giving out some help on a wide-scale basis, providing citizens less than 50% of their lost salaries:

Examples: (as of January 25th, 2021)

  • South Africa
  • China
  • Russia
  • Thailand
  • Australia
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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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