NORDSCI Conference proceedings 2020, Book 2

Business and Management

CONSEQUENCES OF THE COVID-19 PANDEMIC ON THE WORLD AND SERBIAN ECONOMY

Prof. Dr. Ljiljana Stošić Mihajlović, Doc. Dr. Miloš Nikolić

ABSTRACT

One of the biggest economic crises since the industrial revolution centuries ago is underway, and its intensity is still invisible. The current crisis is caused by the coronavirus (COVID-19) pandemic. In March, when the corona began to take off all over the world, including in Serbia, leading epidemiologists claimed that it would be better from May, some even from June, guided by the thesis that warmer weather could stop the virus and bring life back. on the "old". It is now almost impossible to give any precise forecast, both from the health and economic aspect. The only thing that is certain is uncertainty, both for workers and managers and owners, and uncertainty often brings with it fear. The economic crisis of 2020 differs from the crisis of 2008 because the current one was caused by the states with their measures, and the last one was caused by the financial sector by uncontrolled risky behaviour. The consequences will be similar because again, the banks will warn the states that they have borrowed too much, as if the debt did not arise first in order for the banks to be saved. Unlike the world economic crisis that was current ten years ago, this crisis does not have a clear focus in the financial system that can be identified and acted upon with adequate measures. The economic consequences of the pandemic are greater the more economically underdeveloped the country is, and Serbia entered this crisis as a country burdened with numerous problems, a high share of public debt in GDP and developmentally dependent on foreign capital. The suspension of economic activity for a certain period and its restart in an environment of uncertainty and fear of the now certain second wave, are trends that some companies will survive with certain reductions in production and work capacity.

KEYWORDS

COVID-19, pandemic, economic crisis, economy, market, uncertainty

REFERENCE

NORDSCI International Conferece 2020, Book 2, Conference Proceedings, ISSN 2603-4107, ISBN 978-619-7495-14-0, CONSEQUENCES OF THE COVID-19 PANDEMIC ON THE WORLD AND SERBIAN ECONOMY, 33-41 pp, DOI paper 10.32008/NORDSCI2020/B2/V3/03