The economy of the regions of Ukraine under the influence of the challenges of the COVID-19 pandemic

Abstract

The pandemic caused by the COVID-19 has changed the trends of the world and domestic economy, the state of public finances, socio-cultural life of the population. The conditions for implementing the reform of administrative and financial decentralization initiated in the country have become more complicated. In such conditions, the growing epidemiological resilience of territorial communities is the most important competitive advantage of their development. The aim of the article is to study the development trends of Ukraine’s economy at the regional and local levels under the influence of the COVID crisis, to identify ways to overcome its negative consequences for the economy of regions and territorial communities. Methods. The following methods were used for the study: abstract-logical, comparative analysis, graphical visualization, statistical. The article analyzes the negative trends in the economy of the regions under the influence of quarantine measures introduced in connection with the COVID-19 epidemic: declining economic activity of industrial and agricultural enterprises, investment, regions’ export-import, and state and local budget revenues. The negative social effects of quarantine measures have been identified: a decrease in the average wage and the level of employment, an increase in the number of forced leave without pay. The article describes the features of state regulation of business activities in an epidemic and their impact on the content of state and local budgets. The paper emphasizes that the accelerated endogenous economic growth of territorial communities and the involvement in the economic turnover of resources not yet involved and their transformation into development assets is the way out of the situation. Ways of reorientation of business and state support of territorial communities are offered.