This new World Development Report focuses on the interrelated economic risks that households,
businesses, financial institutions, and governments worldwide are facing as a consequence
of the COVID-19 crisis. The Report offers new insights from research on the
interconnectedness of balance sheets and the potential spillover effects across sectors. It
also offers policy recommendations based on these insights. Specifically, it addresses the
question of how to reduce the financial risks stemming from the extraordinary policies
adopted in response to the COVID-19 crisis while supporting an equitable recovery.