The Impact of the COVID-19 Pandemic on Household Expenditures in the EU Countries (The Case of Central and Eastern Europe)

Abstract

The COVID-19 pandemic has been one of the critical significant impact factors at the micro and microeconomic levels and has affected financial resources at both the state and household levels. The article aims to study the pandemic’s impact on the dynamics and structure of household expenditures in Central and Eastern Europe. The research is based on statistical data analysis and trend analysis. Household performance indicators were studied in the period 2017-2021, with a focus on the period 2019-2021, when there was an increase in the incidence of COVID-19. The obtained results allow us to state that households in the countries of Central and Eastern Europe received less income due to the COVID-19 pandemic effect, significantly reduced their expenditures, and preferred savings over investment. Households reoriented their expenditures by reducing spending on recreation and culture, restaurants and hotels, clothing and footwear, transport, electricity, water, gas, housing, food, and non-alcoholic beverages. The share of education costs remained unchanged. In the near term, excluding additional risk factors and uncertainty in current prices, the costs of households in Central and Eastern European countries will decrease. Still, their specific weight in the structure of GDP will decline.