FX.co ★ New pandemic of depression hits European economy

According to a report by Interia, citing the Polish Economic Institute (PIE), European Union countries have incurred annual losses of €600 billion due to widespread depression among citizens. Analysts describe Europe as gripped by a new pandemic of depression and anxiety, initially triggered by the COVID-19 pandemic and exacerbated by the onset of the Russian-Ukrainian conflict. PIE estimates that depression and anxiety have become pandemic-like in Europe and are severely harming the bloc's economy. Currently, economists have attempted to quantify these individual mental health issues into tangible losses for the EU's economy. According to analysts, 62% of Europeans surveyed reported a negative assessment of their mental health, primarily due to the Russian-Ukrainian conflict and the pandemic. PIE's assessment indicates that prolonged depression has resulted in total economic losses of €600 billion across the 27 EU countries and the UK. Interia notes that the overall loss in Europe due to mental health issues has exceeded 4.2% of GDP. Over a third of these costs are attributed to declines in employment and labor productivity. Economists admit that depression needs to be addressed urgently. According to the World Health Organization (WHO), every dollar invested in scaling up treatment for depression and anxiety "leads to a return of 4 dollars in better health and ability to work." Meanwhile, top economist Nouriel Roubini, often dubbed "Dr Doom" for his pessimistic predictions, likened the situation in the global economy to a "slow-motion train wreck."