Specific Macro Factors Affecting Economic Growth During the Covid-19 Pandemic - Evidence from Eagles

Abstract

The study was conducted to assess the impact of macro factors on economic growth in emerging and growth-leading economies (EAGLEs) during the COVID-19 pandemic. The study applied a Bayesian simulation method, and the empirical results exhibited an ambiguous impact of trade openness and the number of internet users on economic growth in these countries during the COVID-19 outbreak. Besides, in response to the economic downturn caused by the COVID-19 pandemic, countries have loosened monetary and fiscal policies simultaneously. However, policy rate reduction was found to be less efficient in the countries previously applying low-interest rates. The evidence showed that reasonable pandemic control measures formed a basis for fastening economic recovery.