How COVID-19 Cases, Death, and the Economy Affected Each Other in 2020-21

What is it about?

The COVID-19 pandemic has been a major global health crisis, causing over 7 million deaths by January 2024 and significantly disrupting economies around the world. This study examines how the spread of COVID-19, the resulting deaths, and economic changes interacted in 25 European countries from January 2020 to December 2022. This relationships between virus spread, deaths, movement, and the economy are complex and interlinked. Economic activities rely heavily on human interactions, which were disrupted during a pandemic. The study highlights the need to consider multiple factors when assessing the impact of COVID-19, as focusing on just one aspect does not give a complete picture.

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Photo by Fusion Medical Animation on Unsplash

Photo by Fusion Medical Animation on Unsplash

Why is it important?

We find that higher rates of COVID-19 transmission led to a decrease in GDP and an increase in deaths. The increase in deaths had a more lasting effect than the immediate economic downturn. When COVID-19 transmission rates went up, people traveled less, showing cautious behaviour to avoid the virus. Actions like banning international travel had mixed effects, slightly boosting the economy and reducing deaths. Countries with higher poverty rates saw more deaths, while those with more effective governments had fewer deaths.