Cover IMF Working Papers
Output Losses in Europe During COVID-19: What Role for Policies?
Author:
Mr. Anil Ari
Search for other papers by Mr. Anil Ari in
Current site
Google Scholar
PubMedClose
https://orcid.org/0000-0002-8707-6985
,
Jean-Marc B. Atsebi
Search for other papers by Jean-Marc B. Atsebi in
Current site
Google Scholar
PubMedClose
, and
Mar Domenech Palacios
Search for other papers by Mar Domenech Palacios in
Current site
Google Scholar
PubMedClose
Series:
IMF Working Papers
Volume/Issue:
Volume 2022: Issue 130
Language:
English
Publication Date:
01 Jul 2022
DOI:
https://doi.org/10.5089/9798400215247.001
ISBN:
9798400215247
ISSN:
1018-5941
Pages:
40
Keywords:
COVID-19 crisis; output losses; monetary policy; fiscal policy; fiscal multipliers; growth outcome; output loss; decomposition methodology; types of fiscal policies; monetary policy support; COVID-19; Central bank policy rate; Income inequality; Europe; Global
Download PDF (1.1 MB) Download Epub
We use a decomposition methodology to analyze the factors underlying the differentiated output losses of European countries in 2020. Our findings are fourfold: First, 2020 growth outcomes can be explained by differences in mobility, underlying growth trends, and pre-pandemic country fundamentals. Second, fiscal and monetary policies helped alleviate output losses during the pandemic in all European countries but to a varying extent. Third, shallower recessions in emerging market economies in Europe can be attributed to higher underlying growth and younger populations. Fourth, fiscal multipliers were higher in countries where above-the-line measures accounted for a larger share of the total fiscal package, the size of the total fiscal package was smaller, and inequality and informality were greater, as well as in countries with IMF-supported program during the pandemic.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2022: Issue 130