Gross Fixed Capital Formation in the Euro Area During the COVID-19 Pandemic
Abstract This paper examines the impact of the COVID-19 pandemic on gross fixed capital formation across the euro area. The empirical analysis suggests that the intensity of the lockdown measures to contain the spread of the virus and the country-specific structure of the economy along with other tr...
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| Format: | Article |
| Language: | English |
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Springer
2022-08-01
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| Series: | Intereconomics |
| Online Access: | https://doi.org/10.1007/s10272-022-1058-1 |
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| _version_ | 1841525623708712960 |
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| author | Mirko Licchetta Eric Meyermans |
| author_facet | Mirko Licchetta Eric Meyermans |
| author_sort | Mirko Licchetta |
| collection | DOAJ |
| description | Abstract This paper examines the impact of the COVID-19 pandemic on gross fixed capital formation across the euro area. The empirical analysis suggests that the intensity of the lockdown measures to contain the spread of the virus and the country-specific structure of the economy along with other traditional drivers, in particular falling output, can explain a large part of the contraction. The bold policy response at the national and EU level mitigated the impact of COVID-19 and supported the recovery. The faster-than-expected rebound in economic activity suggests that the negative economic impact of the pandemic will be more contained than initially feared. However, uncertainty over future health developments remains high, especially given the risks of new more transmissible variants. |
| format | Article |
| id | doaj-art-68a39540b50a4ce5bc3d2267af34b7a5 |
| institution | Kabale University |
| issn | 1613-964X |
| language | English |
| publishDate | 2022-08-01 |
| publisher | Springer |
| record_format | Article |
| series | Intereconomics |
| spelling | doaj-art-68a39540b50a4ce5bc3d2267af34b7a52025-01-17T08:34:12ZengSpringerIntereconomics1613-964X2022-08-0157423824610.1007/s10272-022-1058-1Gross Fixed Capital Formation in the Euro Area During the COVID-19 PandemicMirko Licchetta0Eric Meyermans1Directorate-General for Economic and Financial Affairs, European CommissionDirectorate-General for Economic and Financial Affairs, European CommissionAbstract This paper examines the impact of the COVID-19 pandemic on gross fixed capital formation across the euro area. The empirical analysis suggests that the intensity of the lockdown measures to contain the spread of the virus and the country-specific structure of the economy along with other traditional drivers, in particular falling output, can explain a large part of the contraction. The bold policy response at the national and EU level mitigated the impact of COVID-19 and supported the recovery. The faster-than-expected rebound in economic activity suggests that the negative economic impact of the pandemic will be more contained than initially feared. However, uncertainty over future health developments remains high, especially given the risks of new more transmissible variants.https://doi.org/10.1007/s10272-022-1058-1 |
| spellingShingle | Mirko Licchetta Eric Meyermans Gross Fixed Capital Formation in the Euro Area During the COVID-19 Pandemic Intereconomics |
| title | Gross Fixed Capital Formation in the Euro Area During the COVID-19 Pandemic |
| title_full | Gross Fixed Capital Formation in the Euro Area During the COVID-19 Pandemic |
| title_fullStr | Gross Fixed Capital Formation in the Euro Area During the COVID-19 Pandemic |
| title_full_unstemmed | Gross Fixed Capital Formation in the Euro Area During the COVID-19 Pandemic |
| title_short | Gross Fixed Capital Formation in the Euro Area During the COVID-19 Pandemic |
| title_sort | gross fixed capital formation in the euro area during the covid 19 pandemic |
| url | https://doi.org/10.1007/s10272-022-1058-1 |
| work_keys_str_mv | AT mirkolicchetta grossfixedcapitalformationintheeuroareaduringthecovid19pandemic AT ericmeyermans grossfixedcapitalformationintheeuroareaduringthecovid19pandemic |