The Economic Costs of the Coronavirus Shutdown for Selected European Countries: A Scenario Calculation

The economic costs of a shutdown consist primarily of the loss of value added during the period of production interruption and potential follow-up costs in the form of a delayed return to normal economic activity or permanent impairment as a result of insolvencies or the loss of business relations during the crisis. The following analysis looks at various shutdown scenarios for Germany and selected European countries and is methodologically based on Dorn et al (2020).