Economic effects of Covid-19 in Luxembourg

In this note, RECOV id- a group of economists based in Luxembourg who join forces to assist the Task Force for the Coordination of the Public Research Sector in the Context of the Covid-19 Pandemic (Work Package 7 led by Aline Muller, CEO of the Luxembourg Institute of SocioEconomic Research (LISER)) - aims to rough out the subject and provide knowledge on the economic issues related to the Covid-19 crisis and to suggest plans of actions to mitigate economic damages from Covid-19. Yet, lack of hindsight and information available for research at present makes any forecasting exercise difficult.

This document provides a summary of ongoing research, proceed to back-of-the-envelope estimations of the “direct” economic impact of the health crisis and resulting policy measures, anticipate forces that may drive to a breakdown of the global economic system, discuss the policy options that are available to decision makers to mitigate the short-run costs and the risk of a systemic collapse, and provide suggestions for future research.


Beine M., Bertoli S., Docquier F. et al (2020) "Economic effects of Covid-19 in Luxembourg (First RECOV id working note with preliminary estimates)", Working paper, Université du Luxembourg