Annals of the University of Oradea: Economic Science (Jul 2021)
ECONOMIC AND SOCIAL IMPACTS OF COVID-19 IN THE PAST YEAR IN THE EUROPEAN UNION, WITH SPECIAL REFERENCE TO ROMANIA AND HUNGARY
Abstract
The COVID-19 pandemic in early 2020 has made a big difference in the lives of all countries around the world. This study is the first part of a 9-months student research work started in 2021 February, based on literature research. Its aim is to present and summarize the major economic and social impacts of the coronavirus epidemic on the macroeconomy and industrial sectors during a one-year period. Our research is mainly based on secondary research methods - and accompanied by data from the most up-to-date statistical databases and other current research studies, we drew conclusions based on our own calculations in connection with the 27 member states of the European Union including Romania and Hungary. As a result of epidemiological measures in national economies, the role of certain sectors has shrunk, while other sectors have undergone tremendous development. The unprecedented spread of teleworking, the reduction in working hours in almost all sectors and the consequent lower wages, and the increase in the unemployment rate, have led to a decline in the value of gross domestic product for all nations, compared to the same period of the previous year. In order to save their country from the collapse of the economy, those responsible for managing them, were also forced to introduce measures that increased the country’s state debt and worsened their public finance position. Certain sectors of the economy have been hit hard by the effects of the past year, but there have also been those that have flexibly adapted to the changes. The sectors responded in different ways in each country. It can be argued, however, that the entertainment industry, performing arts and other services that require a personal form of presence have suffered the most from the constraints of the past year. But in the field of information and communication, there have been positive developments in many countries using the opportunities offered by information technology. However, changes during the pandemic period have led to a further increase in wealth inequalities in our world. As a result, unfortunately, more and more people are falling into deep poverty and the number of wealthy people is also increasing. The transformation of consumers’ values and income situation is having an impact on all sectors of the national economy. The question arises: when will declining companies be able to recover, will they be able to make the profits typical of their pre-epidemic management, and if so, when? Can we live in the future the way we lived in the past? Whether humanity will realize, that the growing differences between continents, countries, people are only creating larger controversies, and at last we do not only realize, but act in a responsible way for the sake of equality for all.
