The Economic Impact of COVID-19 on Switzerland and Other Developed Countries

Dr Isabella Blengini | April 6, 2023

By Dr. Isabella Blengini How Covid hit the economy The Covid health crisis translated into an economic crisis through two main channels. On the one hand, health issues reduced the availability of labor force, thus reducing production. On the other hand, the great lockdown, necessary to fight the disease, limited the ability of some sectors to produce (either because they were directly blocked or because they could not receive intermediary goods necessary for production). Besides the above-mentioned negative supply shocks, the economy was also hit by a negative demand shock due to several reasons including people losing their jobs and...