Synchronization of Business Cycles in European Union Countries

Abstract The COVID-19 pandemic has affected economic activity worldwide. Despite the progress made by vaccination campaigns, important uncertainties still linger amid persistent global value chains disruptions and ongoing energy crisis. A proper understanding of behavior economy is therefore essential for future policy decisions. While there are plenty studies regarding business cycles, using various methods from univariate filters to more complex methods, less papers focus on large scale comparisons. In this paper, we provide an overview cycles in European Union countries. We use Hodrick-Prescott filter order measure cyclical component gross domestic product Bry-Boschan-Quarterly algorithm further analysis, namely duration amplitude cycles. Our results show that their size countries varies 2.7 6 years between 1.6 5.6 percentage points. developed economies, stable. Furthermore, strong correlations terms found case certain groups countries, such as Baltic ones or Belgium, Austria France. Romania, its cycle similar one Bulgaria, Croatia Slovenia. These could useful information policymakers decisions conditional both current state structural characteristics. Under these circumstances, support measures should also take into consideration properties economy.