This weekly review contributes to the debate on how the COVID-19 induced hysteresis effects could affect growth in South Sudan. It addresses two related questions: What channels would transmit the COVID-19 scarring effects to the output? What can public policy do to support recovery? The rest of the review proceeds as follows: Section 2 examines the literature on the hysteresis. Section 3 lays out the theoretical framework, relying on Keynesian economics to shed light on key factors affecting output. Section 4 discusses potential channels through which such effects could be transmitted to the output. Section 5 outlines a few policy implications and concludes the review.
