This content is relevant for:Coronavirus / Economic Structure / Investment Environment
Business Location Germany
Creditreform AG has developed an index to measure the structural pandemic susceptibility of EU countries and the United Kingdom. The Pandemic Vulnerability Index (PVI) reflects the economic, health and social vulnerability levels in the event of such an outbreak. The study shows that Germany is well prepared for such an eventuality.
According to Creditreform AG, the PVI is a measure that seeks to measure the degree to which the different economies in Europe are vulnerable to pandemics like the current Covid-19 pandemic. The PVI provides an approximate measure of the potential economic, health, and social consequences of a pandemic outbreak by identifying different risk dimensions and country-specific exposures. The authors of the report emphasize that the PVI applies to pandemics in general and not exclusively to the coronavirus.
The PVI comprises five categories, with each category divided into its constituent variables.
1. Economic structure
Tourism contribution to GDP
Global value chain integration
Industry share of total gross value added
Share of micro-enterprises
2. Labor market
3. Health care system
Mortality rate influenza
Acute care beds per head
Availability of health practitioners
Healthy life years
Population share of elderly
5. Mobile work capacity
Work from home
Broadband web access
The higher the index value, the more vulnerable a country is to an upcoming pandemic. Lower index values suggest that countries are less at risk, with the likely consequences of a pandemic being comparatively smaller.
Thanks to their excellent healthcare systems, mobile working possibilities and stable labor markets, countries from northern and central Europe – including Luxembourg, Germany, Denmark, Sweden and the UK - seem more resilient to future pandemics.
Germany enjoys the best outcome behind Luxembourg, with the second best overall result of -0.57. According to the study, Germany’s resilience is especially based in the following factors: