How bad will the Covid-19 second wave be for Luxembourg’s economy?
The Covid-19 second wave is hitting much of Europe. While this wave mostly affected young healthy people at its start, it is now spreading to older and more vulnerable segments of the population. It is thus with a weary sense of déjà vu that European citizens have been impacted by new packages of restrictions implemented to contain the virus and to prevent healthcare systems from being overwhelmed. Restrictions induce ambiguous effects on the economy as they directly curtail market transactions but also avoid panic-driven responses. This policy brief combines recent tools developed at STATEC and LISER to assess the macroeconomic impact of the second wave, to shed light on the interactions between macroeconomic and epidemiological outcomes, and to compare the implications of moderately and highly coercive sanitary measures.
Authors: M. Burzynski, F. Docquier, J. Machado, F. Adam, T. Haas
More information is available here.
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