MACROECONOMIC IMPACT OF THE COVID-19 PANDEMIC – GLOBAL EFFECTS AND UZBEKISTAN’S RESPONSE

Abstract

This report analyzes the unprecedented economic impact of the coronavirus (COVID-19) pandemic, highlighting its effects on aggregate demand and supply, unemployment, price levels, and exchange rates globally. Originating from China's Hubei province, COVID-19 rapidly became a global health and economic crisis, resulting in a severe short-term recession, significant unemployment, falling inflation rates, and currency depreciation in developing economies. The tourism sector and related industries faced immediate substantial losses, with global GDP forecasts shifting sharply downward. Governments worldwide adopted substantial fiscal and monetary stimulus measures to mitigate the economic downturn. Using Uzbekistan as a case study, the paper further examines national responses, evaluates their effectiveness, and provides policy recommendations focused on direct financial support and targeted aid to small businesses and vulnerable populations.