Economic impact of Covid-19 pandemic

The corona pandemic led to a widespread recession in the world economy. The lockdown helped to save lives, but the implied economic losses exceed those of the Spanish flu by far. While demand recovered in the aftermath of the lockdown, supply bottlenecks due to de-globalization fears, shortages of labour and capital and not sufficient capacities to transport raw materials and intermediates caused a substantial rise of inflation at the global scale. China lost its position as a growth engine of the world economy, partially due to the non-Covid tolerance. High inflation, coupled with low or stagnating output growth can be persistent, especially if wage-price spirals emerge. To combat the inflation pressure, major central banks will increase interest rates.

The aim of the research is to examine the economic consequences of the pandemic, to evaluate the effects and the efficiency of the different lockdown mesures and to investigate the drivers of stagflation.


Impact of pandemic on the economy and unemploment

Evaluation of lockdowns and policy responses to the crisis

Some references

Determinants of the Covid-19 recession and recovery in Europe
Intereconomics 55, 2020, 365-370 (with Gros)

Expert study on the econnomic policy response to the Covid-19 crisis by the EU and its member states
Report for the European Court of Auditors, 2020 (with Gros)

Lockdowns and the US unemployment crisis
Economics of Disasters and Climate Change 5, 2021, 449-463 (with Gros)

Economic impact of the Corona pandemic. Costs and recovery after the crisis
Asia and the Global Economy 2, 2022, 1-7

Back to selection