Modelling the economic impact of COVID19 under different policy choices: Mitigation versus suppression when time is a scarce resource

Implications of COVID-19 and mitigation measures on gender and the Zimbabwean economy

This paper provides a macro-micro modeling analysis of the ex-ante effects of COVID-19 mitigation and recovery policies on macroeconomic and distributional effects, particularly on female and male workers, income distribution, and poverty in Zimbabwe. With an emphasis on modeling gender-disaggregated labor markets and COVID-19 policy responses, the paper presents and combines the most recent data on poverty, gender, and the economy at the national level. The study finds that i) without any government mitigation measures, the gross domestic product will remain below business-as-usual levels; ii) poorer women are hardest hit because they are employed in sectors that are exposed and vulnerable to COVID-19 response measures; and iii) mitigation measures to counteract the negative effects of increases in poverty are effective only in the short term, and additional measures to sustain poverty reduction for the long term to sustain the poverty reductions are required. These results highlight the short-term versus long-term dilemma the government faces when contemplating responses to COVID-19.

Economic Burden of COVID-19: A Systematic Review

Objective

To review and qualitatively synthesize the evidence related to the economic burden of COVID-19, including healthcare resource utilization and costs.

Methods

A systematic review of studies that assessed the economic burden [eg, direct costs, productivity, macroeconomic impact due to non-pharmaceutical interventions (NPIs) and equity] of COVID-19 was conducted by searches in EMBASE, MEDLINE, MEDLINE-IN-PROCESS, and The Cochrane Library, as well as manual searches of unpublished research for the period between January 2020 to February 2021. Single reviewer data extraction was confirmed independently by a second reviewer.

Results

The screening process resulted in a total of 27 studies: 25 individual publications, and 2 systematic literature reviews, of narrower scopes, that fulfilled the inclusion criteria. The patients diagnosed with more severe COVID-19 were associated with higher costs. The main drivers for higher costs were consistent across countries and included ICU admission, in-hospital resource use such as mechanical ventilation, which lead to increase costs of $2082.65 ± 345.04 to $2990.76 ± 545.98. The most frequently reported indirect costs were due to productivity losses. On average, older COVID-19 patients incurred higher costs when compared to younger age groups. An estimation of a 20% COVID-19 infection rate based on a Monte Carlo simulation in the United States led to a total direct medical cost of $163.4 billion over the course of the pandemic.

Conclusion

The COVID-19 pandemic has generated a considerable economic burden on patients and the general population. Preventative measures such as NPIs only have partial success in lowering the economic costs of the pandemic. Implementing additional preventative measures such as large-scale vaccination is vital in reducing direct and indirect medical costs, decreased productivity, and GDP losses.