ECONOMIC CONSEQUENCES OF COVID-19 AND THE CONCEPTS OF THEIR OVERCOMING

Abstract

The main aim of this paper is to analyze the economic impact of COVID-19 pandemic on the global economy. Methods of summarization, formal logic and analytical methods were used in the research. The informational database is the official web-sites of the international organizations such as World Health Organization, International Labor Organization, and United Nations Development Program. In the paper the economic consequences of COVID-19 and the concepts of their overcoming are examined. The authors analyze the main problems , caused by COVID-pandemic worldwide, among which the following are determined: (1) decrease of employment level; (2) high risk of work closures by economic branches; (3) global working hours reduction by regions; (4) potential impacts of the pandemic on earnings of informal workers. The authors highlight that consequences of the current crisis are estimated 3-4 times more than the financial crisis of 2008. It was mentioned that the COVID-19 pandemic has a significant impact on the markets’ development by creating the great disproportion in the markets’ development. Also, in the paper the impacts of recommended and required workplace closures and the employment in countries with recommended or required workplace are presented. Impact of the COVID-19 crisis on enterprises (employers and own-account workers) in risky sectors by the economic sectors is given. The potential consequences are illustrated by the example of the economy of the G7 countries and EU. Annual output gap for EU countries was presented in the research. Three scenarios for the development of the COVID-19 pandemic were examined. They depend on termination of the economy’s lockdown. In the paper the necessity of the risk assessment scales and established crisis monitoring processes and systems have been proved. The example of the risk assessment scale, proposed by Schlumberger, was illustrated. Road map for the minimization of losses from COVID-19 was proposed by the authors, which takes into account the main problems identified by WHO as prerequisites. The COVID-19 crisis program, drawn up by authors, was presented in the paper.