Abstract
This chapter provides an overview of the socio-economic impact of the COVID-19 pandemic on Southern and Eastern Mediterranean Countries (Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine and Tunisia). Their healthcare systems were unprepared for such an unprecedented crisis (Ayadi and Ronco, 2021). Additionally, these countries' relatively weak economic capacity is hampered by various socio-economic barriers exposing them to higher vulnerability (Ayadi et al., 2020). Some of the main socio-economic challenges include the high level of poverty and inequality, the low levels of social protection coverage, high levels of informality, inactivity and unemployment, high levels of debt, small fiscal space together with great reliance on food imports that could represent a critical burden on countries' food security.
This chapter starts with a description of the evolution of the pandemic in the target countries and the relative policy measures adopted. The impact of the pandemic was devastating economically at both macro and micro levels. At the macroeconomic level, we focus on its impact on output, employment, trade and inflation. At the microeconomic level, we study the impact of the pandemic on loss in working hours and an increase in unpaid work notably childcare burden and highlight the economic sectors that were hit the hardest with a focus on the role of digitalization. It is important to note that the impact of the health crisis goes beyond hampering economic activity. It has affected society with rising inequalities, an increase in violence (also domestic violence within the households), an increase in brain drain, migration and a significant decrease in the educational level. Policy recommendations are suggested to conclude the chapter for building more resilient economies.