Pandemic Impact on Macroeconomic Instability and Economic Growth: A Comparative Study of Asia and Europe

Abstract

This study examines the macroeconomic impact of the COVID-19 pandemic on Asia and Europe, comparing GDP contractions, inflation trends, labor market responses, fiscal policies, and trade disruptions. Drawing upon World Bank, IMF, OECD, and Financial Times data, alongside insights from leading economic journals, the study highlights how Asia demonstrated stronger resilience due to manufacturing dominance, digital transformation, and trade adaptability. In contrast, Europe faced prolonged economic instability due to its reliance on the service sector, energy dependencies, and geopolitical challenges. A detailed analysis of China, India, Germany, and the UK reveals distinct economic recovery patterns, providing empirical evidence on how economic structures influenced post-pandemic growth trajectories.