The Economic Impact of Pandemic Covid-19 Outbreak: Comparative Analysis of Three Major Economic Groups.

Abstract

The Pandemic Covid-19 outbreak cause a negative shock to the world economy, throwing many countries into economic uncertainty, facing an economic recession and if Covid-19 continuously actively spread possibly many countries face an economic depression. This study assessing the economic impact of Covid-19 by analyzing on the three main economic indicators which are GDP growth rate, inflation, and unemployment. This study using estimation proposed by Aditya and Acharyya (Aditya and Acharyya J. Int. Trade Econ. Dev. 22:959–992, 2013), applies generalized methods of moments (GMM) estimators. Data consist of 171 countries of the quarterly data set. The results of the study indicate that the most significant effect of the Covid-19 outbreak is on the GDP growth rate. However, the effect of the Covid-19 outbreak on inflation and unemployment is no exception. The findings suggest that the world economy can recovery or expand if policymakers and government focusing to stimulate investment through fiscal intervention which is likely to give a positive multiplier effect on economic activity.