India will use its manufacturing capacity to make U.S. vaccines, with financing coming from the U.S. International Development Finance Corporation and the Japan Bank for International Cooperation. Australia will finance training and provide last-mile logistical support for the distribution of vaccines, he added, that will predominantly go to the Pacific Islands, Southeast Asia and countries in the Indian Ocean.

Policy actions will continue to support economic activity and financial markets after the pandemic has eased, it added. Policymakers will continue to support economic activity long after the pandemic has faded, in some cases for years, Moody’s said.

Moody’s expects the incidence and prevalence of the pandemic to gradually decline over the course of this year, as vaccination numbers rise. In turn, this will allow governments to gradually ease lockdown measures.

“This is a super-cautious approach based on some isolated reports in Europe,” said Stephen Evans, a professor of pharmacoepidemiology at the London School of Hygiene and Tropical Medicine.