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The Sectoral Impact of the COVID-19 Crisis. An Unprecedented and Atypical Crisis

Author

Listed:
  • Erik Canton
  • Federica Colasanti
  • Jorge Durán
  • Maria Garrone
  • Alexandr Hobza
  • Wouter Simons
  • Anneleen Vandeplas

Abstract

The COVID-19 pandemic has triggered the largest and most abrupt contraction in economic activity in recent European history. This brief discusses the sectoral impact of the pandemic. Partly as a result of the nature of the containment measures, contact-intensive services have suffered disproportionally. Abrupt demand shifts and disruptions in global value chains have also affected sectors differently. The prospects for a quick and strong recovery are good but differ across sectors, calling in some cases for a reallocation of resources within and possibly across sectors. The pandemic will also accelerate existing trends such as digitalisation, the green transition, and changes in global value chains. Appropriate policy responses are needed to ensure these transitions are sustainable and inclusive.

Suggested Citation

  • Erik Canton & Federica Colasanti & Jorge Durán & Maria Garrone & Alexandr Hobza & Wouter Simons & Anneleen Vandeplas, 2021. "The Sectoral Impact of the COVID-19 Crisis. An Unprecedented and Atypical Crisis," European Economy - Economic Briefs 069, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecobri:069
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    References listed on IDEAS

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    More about this item

    Keywords

    COVID-19 crisis; Sectoral impact; Digitalisation; Green transition; Global value chains; Canton; Colasanti; Durán; Garrone; Hobza; Simons; Vandeplas.;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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