The COVID-19 epidemic caused a specific economic crisis, which did not stem from economic imbalances but from health reasons. It affected both demand and supply, as many economic activities were restricted due to infection prevention and control measures. Investment is an important component of gross domestic product and plays a key role in stimulating economic growth, increasing productivity and competitiveness and improving living standards.
This master thesis examines the impact of the COVID-19 epidemic on fixed capital investments in Slovenia and EU member states, focusing on the differences between public and private investments. The empirical part is based on the analysis of secondary data from the Statistical Office of the Republic of Slovenia and Eurostat. The results show that despite the COVID-19 epidemic, public investments increased slightly in 2020, while private investment declined, but picked up the following year, following the high growth of public investment. Investments is sensitive to economic changes and its evolution during a crisis is important for understanding overall economic dynamics and for policy planning in crisis situations.
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