Assessment of the Economic Effects of the Covid-19 Pandemic on Various Sectors and Individuals in Turkey, in Both Short- and Long-Term Perspectives

Abstract

Historically, pandemics have been observed to disrupt global economic stability adversely, and the Covid-19 pandemic is no exception. While the pandemic’s economic impact has varied across sectors, income inequality has caused it to affect individuals differently. Analysis of sectoral economic conditions over recent years indicates that 2020 marked the peak of these adverse effects, followed by gradual recovery. Nevertheless, the expenditures, payments, and deferred debts that governments prioritized during the pandemic period have destabilized economic balances. Given that restoring these balances is a long-term process, the effects of economic downturns continue to be felt. The ongoing economic disruption, decline in individual incomes, and subsequent shifts in spending priorities underscore the continued economic challenges stemming from the pandemic’s impact. This study seeks to assess the economic impacts of the nearly three-year-long Covid-19 pandemic on various sectors and individuals, examining their implications up to the present day. The economic effects of the pandemic differ across sectors, with many experiencing improvement in 2022. Nonetheless, the persistent negative repercussions on the economy and rising poverty levels have resulted in alterations to consumer spending preferences. The detrimental effects on the nation’s economy are expected to be felt over the long term.