SEE economies heavily dependent on Covid-vulnerable sectors – study

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Sectors expected to bear the brunt of the economic crisis brought about by the COVID-19 pandemic form a little over 57% of the gross added value (GVA) in eleven economies in Southeast Europe (SEE), according to a report published by SeeNews on Wednesday.  On the other hand, sectors expected to emerge as growth drivers in the current crisis form too small a share of SEE economies’ GVA to make a difference and counterbalance the negative effects in a meaningful way, according to estimates by the authors of the report entitled, COVID-19 and SEE: the initial prospects to fight off the crisis. The report covers the economies of Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Moldova, Montenegro, North Macedonia, Romania, Serbia and Slovenia. The report identifies five sectors as “losing” in the crisis — tourism, trade and transport, as well as real estate, manufacturing, construction and arts and entertainment.  On the upside, most governments across the region are in a favorable position to introduce comprehensive economic measures to mitigate the effects of the crisis thanks to low public debt levels in most countries in SEE, the authors of the report note. Currently, seven out of the eleven economies covered in the report are expected to restore their GDP to pre-pandemic levels in 2021.

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