Abstract
The article provides the analysis and a brief description of the positive and negative impact of the COVID-19 pandemic on some global sectors of the economy. The following changes in the main macroeconomic indicators of Ukraine and Germany due to the outbreak of the epidemic are under investigation: GDP, external debt, inflation and unemployment, exports and imports of goods and services, foreign trade, and foreign trade balance. The article highlights the fact that due to the crisis caused by the COVID-19 pandemic, Ukraine’s industry in 2020 was on the verge of extinction. It has been established that the economic recession, declining purchasing power and changes in the behavior of citizens, lack of state aid (or its inefficiency) by the government have led to a reduction in production, or even the shutdown of entire sectors of the national economy. During the crisis, the Ukrainian government introduced a strict regulatory policy that created obstacles to the activities of private enterprises, which reduced their profitability and liquidity. The article emphasizes that first of all the consequences of the COVID-19 pandemic significantly affected small and medium enterprises. Large corporations were forced to cut staff, send employees on unpaid leave, reduce wages and working hours. It is noted that among the EU countries, Germany was one of the first to suffer the negative effects of the pandemic, which was due to the high level of openness of the economy, respectively, dependence on exports and imports of goods and services. Tough measures taken by the German government to fight the COVID-19 pandemic (quarantine for citizens) have significantly worsened the situation in the economy. To overcome the effects of the crisis, the German government has developed and implemented a large-scale program of support to businesses. The article presents the measures implemented by the governments of Ukraine and Germany to overcome the COVID-19 pandemic and stabilize the economic situation in the countries. Certain actions that the Government of Ukraine should implement in order to overcome the negative consequences of the coronavirus epidemic are as well highlighted.
Highlights
The article provides the analysis and a brief description of the positive and negative impact of the COVID19 pandemic on some global sectors of the economy
The complete or partial shutdown of a number of enterprises will have a negative impact on the global labor market - about 80% (3 billion) of the working population of the world suffered from the COVID-19 pandemic [1]
By studying Germany's experience in fighting COVID-19, Ukraine could implement certain measures to stabilize the country's economy, namely: 1) to promote payments to unemployed private entrepreneurs who lost their business due to the pandemic; 2) increase payments to citizens whose working hours have been reduced by 50% or more; 3) allocate subsidies for tourism enterprises to prevent bankruptcy; 4) provide citizens with deferral of utility payments; 5) pay subsidies to citizens who are forced to stay at home to care for a child
Summary
One of the most affected industries due to restrictions imposed on movement between countries. Transportation Significant losses are experienced by airlines whose demand for services has dropped to services zero in the quarantine situaiton. The main reasons for the decrease in revenues in this industry are: failures in the supply of spare parts from China, production disruptions in Europe, the closure of car assembly plants in the United States. Unstable market conditions have caused some negative impact on a number of supply chains in the field of agricultural exports. About 60% of oil consumption is related to human mobility, respectively, quarantine measures have significantly affected demand in this area. The main loss is a significant decline in the capitalization of a number of global oil companies due to falling demand for oil due to transport restrictions and reduced energy consumption. Oil prices have reached the lowest level in 17 years, as a result - its production may become unprofitable for some companies
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