Journal Article

The Economic Impact of COVID-19 around the World

Abstract: This article provides an account of the worldwide economic impact of the COVID-19 shock. In 2020, it severely impacted output growth and employment, particularly in middle-income countries. Governments responded primarily by increasing expenditure, supported by an expansion of the supply of money and debt. These policies did not put upward pressure on prices until 2021. International trade was severely disrupted across all regions in 2020 but subsequently recovered. For 2021, we find that the adverse effects of the COVID-19 shock on output and prices were significant and persistent, especially in emerging and developing countries.

Keywords: COVID-19; output growth; employment; government expenditures; monetary policy; money supply; government debt; inflation; international trade;

JEL Classification: E52; E62; F34; F41; G15;

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Review

Publication Date: 2023-04-10

Volume: 105

Issue: 2

Pages: 74-88