Long-term Economic Impact of the Coronavirus Pandemic

The discussion about the economic consequences of the coronavirus crisis has so far focused primarily on the more short-term economic effects. However, there is a risk that economic development will also be negatively affected over the longer term. Weaker growth in production potential is to be expected, especially due to the crisis-induced weakness in investment in the economy. At the same time, the sector structures are also likely to change. Some industries that are severely affected at the moment, such as tourism or gastronomy, are likely to recover relatively quickly once the demand-side restrictions are lifted, but production capacities in industry might be eliminated permanently.