Effects of the Covid-19 Pandemic on Growth, Unemployment, Inflation and Industrial Production in the Euro Area

Article Information
Journal: Business and Economics Research Journal
Title of Article: Effects of the Covid-19 Pandemic on Growth, Unemployment, Inflation and Industrial Production in the Euro Area
Author(s): Mehtap Ozenen Kavlak, Bulent Gunsoy, Muzeyyen Anil Senyel Kurkcuoglu, Saye Nihan Cabuk, Ahmet Dabanli
Volume: 12
Number: 4
Year: 2021
Page: 767-786
ISSN: 2619-9491
DOI Number: 10.20409/berj.2021.351
The COVID-19 pandemic triggered a financial crisis having deeper effects than the global financial crisis that took place in 2008. Large-scale monetary and fiscal measures have been taken globally to minimize the negative outcomes of the pandemic regarding domestic demand, foreign trade, and tourism activities. The aim of this study is to determine how the changes caused by the COVID-19 pandemic in the Eurozone countries affect the macroeconomic indicators. The findings obtained within the scope of the study were mapped in the Geographic Information Systems (GIS) environment. In this study, the economic effects of the pandemic on the Eurozone countries are evaluated in terms of the gross domestic product (GDP), one of the most important indicators for evaluating the strength of the country’s economies and development levels, inflation, unemployment, and industrial production. It was seen that the negative effects of the COVID-19 pandemic on the Eurozone economies manifested themselves in the first quarter of 2020 (Q1) and these effects reached their maximum level in the second quarter (Q2) of the same year. The recovery period and the positive trends signaling a way out of this crisis are observed to start in the third quarter (Q3). The economic developments in this period emerged from the normalization attempts and the relaxation of the tight restriction measures which had been put into practice at the beginning of the pandemic process. The restrictions aiming to prevent the spread of pandemic caused contractions in tourism, industry, and other sectors while resulting in unemployment in these sectors. Switching back to normal, gave way decreases in unemployment rates in the related sectors.

Keywords: COVID-19, Pandemic, Macroeconomics, Eurozone Countries, Geographic Information Systems

JEL Classification: F41, E12

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