Purpose – A systematic, PRISMA-guided literature review was conducted using four databases (ProQuest, PubMed, EconLit and Scopus) to analyze research published between February 2020 and August 2021. This review included 31 studies out of 1,248 that were identified.

Design/methodology/approach – In addition to the serious health issues it causes, severe acute respiratory syndrome coronavirus 2 (COVID-19) has a destructive impact on the global economy. The objectives of this study are (1) to examine the growing literature on variations of economic factors due to COVID-19 (2) to review the literature on the governmental response to the pandemic and (3) to discover the perspective and the gaps and outline the future avenues for further research.

Findings – All selected studies (31) have used the macroeconomic, household and health economic factors to analyze the economic impacts of the COVID-19 pandemic. Among these studies, 22 articles examined the economic consequences and macroeconomic activities, 7 analyzed microeconomic costs and healthcare tradeoffs and 2 studies reviewed economic uncertainty and macroeconomic expectations.

Research limitations/implications – This study comprises the most relevant research articles to measure the economic consequences of COVID-19. As a result of the lockdown and other containment initiatives, price levels, employment and consumption patterns have all suffered.

Practical implications – Therefore, the government’s requirement to develop policy tools and approaches to ensure a full recovery from the pandemic should lead to greater long-term economic resilience.

Originality/value – This study examines the economic implications of COVID-19, with the aim of not only analysing COVID-19’s negative economic effects but also, those measures that provide new directions in the form of short-run economic impacts and policy decisions.