COVID-19: New challenges for the Ukrainian economy

Abstract

The article analyzes the works of economists who deal with the impact of COVID-19 on the economic development of European countries. The COVID-19 pandemic has already inflicted severe damage on the Ukrainian economy despite relatively mild public health implications so far. The authors analyzed the impact of COVID-19 on the activities of certain sectors of the Ukrainian economy, namely: catering, real estate, the judiciary and more. The direct impact of the pandemic on the economy has been channelled through stopped domestic economic activity in sectors affected by the shutdown, as well as lower demand for Ukrainian exports and lower remittances from abroad. Travel restrictions almost completely stopped local and international tourism. Second round effects stem from reduced household income, redirection of government spending and disruption of investment plans of companies, resulting in lower demand for a wide range of goods and service. For example, reduced electricity demand caused disruptions in energy system balance and lower demand for coal. “Forecast for 2020–2021” has been proposed, developed by experts on the basis of generalized consensus assumptions obtained from the results of the survey. The position of the Union of Ukrainian Entrepreneurs on reducing the tax burden on Ukrainian enterprises during the COVID-19 pandemic and the need to implement radical measures to support business has been revealed. The author has identified short- and medium-term measures that can improve the financial situation of the business after their release from quarantine. Several scenarios for overcoming the post-crisis period for the Ukrainian economy have been proposed.