The influences of covid-19 pandemic on macroeconomic indexes for European countries

Abstract

The Covid-19 pandemic had a major impact in the entire world, both sanitary and economic. The purpose of this study is to analyse the European countries from this point of view. The main economic indicators related to import, wages, labour productivity, consumption, taxes, gross domestic product (GDP), as well as variables related to Covid-19 pandemic measures were considered in order to estimate the impact that pandemic measures have in economy. Principal component analysis was performed in order to reduce the dataset dimensionality and to create new indicators. Selected European countries are characterized and compared using principal components analysis outputs while regression is used to identify an influence of independent variables on GDP. The main results show that, comparing European countries economic situation in 2020 with the previous 2 years and considering variables that show the adopted closure measures, the Covid-19 pandemic have influenced the GDP from European countries.