Implications of the 2020 Global Economic Crisis for Sustainable Development and Financial Mechanisms for Their Management

Reikhanova, Irina V.

Purpose: The purpose of this research is to determine the implications of the global economic crisis of 2020 for sustainable development, as well as to justify preference and develop recommendations for the application of financial mechanisms for their management. Design/Methodology/Approach: The objects for study are the top 12 countries affected (with the highest incidence) by COVID-19. The author predicts the change in indicators of sustainable development under the influence of the economic crisis of 2020. Using the regression analysis method, the dependence of indicators of sustainable development of the economy on financial mechanisms of crisis management is revealed, which are annual inflation of consumer prices, the Gini index (income inequality), R&D expenses and the total amount of investment in the economy. Findings: It is justified that thanks to the use of financial mechanisms of economic crisis management, the damage from the 2020 crisis, expressed in a reduction in indicators of sustainable development, can be reduced by an average of 14.94%. Originality/Value: The example of the top 12 countries affected by COVID-19 shows that the impact of the global economic crisis of 2020 on sustainable development can be substantially mitigated through financial mechanisms of their management. To do this, annual inflation of consumer prices in 2020 should be reduced by 2.15% compared to 2019, the Gini index (income inequality) - by 41.69%, R&D spending should be increased by 11.58%, and the total investment in the economy - by 2.32%.