COVID 19: Implications for the economy

Covid-19 has been one of the most important developments in the 21st century globally. Apart from claiming millions of lives (see chapter 10 of this book), it has had a profound impact on economies around the world, both at a micro and macro level. At a micro level, it affected numerous businesses, including their international activity. Global value chains have been disrupted by lockdowns presenting new challenges to international sourcing and sales (see chapters 1 and 2). The impact of the pandemic was particularly high in tourism and hospitality. This in turn was reflected in the financial situation of businesses from this sector but also by regions relying on tourism and hospitality as their major sources of income (see chapter 6). At a macro level, effects of Covid-19 led to numerous policy interventions aimed at minimizing its impact on economies and societies (chapter 7). When international linkages are considered, the effects of the pandemic were experienced in global trade and financial flows (chapters 8, 9). It remains to be seen how long lasting these effects will be, although besides the direct effects we need to observe the indirect ones, where the pandemic could have impacted the world indirectly by triggering new challenges, both in the economic realm, such as the inflationary pressures that we are currently experiencing, and in the geopolitical realm where the pandemic has accelerated certain processes and conflicts. Although by the end of 2022 the Covid-19 pandemic appears to be fading and the world is beginning to return to normal (chapter 3) we should not forget to draw conclusions from the dramatic consequences of this pandemic, especially as future pandemics cannot be excluded. Hopefully, this volume can offer insights that can help us to prepare better for such an unwelcome but not impossible future.