The COVID-19 pandemic and the economic crisis determinants

Abstract

2020 was a very exceptional year from many points of view. It will be remembered as COVID-19 year. The pandemic started in China at the end of 2019 and gradually reached all countries worldwide, producing an unprecedented global health, social and economic crisis. In this paper, first of all, we analyse the economic consequences of this pandemic, considering the European framework. A secondary aim of this paper is to identify (a) the actual impact of the containment measures adopted by each state, (b) the connection between the extent to which the pandemic has hit each country and the income supports provided. The analysis involves 31 European countries the 27 European Union countries more Iceland, Norway, Switzerland, and the United Kingdom). Results highlight great differences across countries in terms of economic response to the pandemic and job losses. Indeed, from the second quarter of 2020, all the countries registered a contraction in GDP. However, some of them resumed their positive trend in GDP very fast, with a positive balance at the end of 2020. This is the case in some Eastern countries and Ireland. Conversely, we can say that Continental and Mediterranean countries registered a decline and, finally, Nordic countries showed almost stationarity.