The effect of COVID-19 on the economic systems: evidence from the Italian case

COVID-19 pandemic forced governments around the world to adopt extraordinary containment measures to stem the diffusion of the virus, such as quarantines and shut-downs. Hence, the pandemic had a devastating impact on businesses and particularly on small and medium-sized enterprises (SMEs), which are vital for the European economy. In this paper, the authors investigate the effects of these measures on Italian SMEs. This is done quantitatively through an artificial intelligence algorithm that assesses the health status of an enterprise based on specific financial indicators. The results of the study represent a valuable tool for policy-makers and company boards to better understand the economic landscape and to aid data-driven decision-making.