Lockdown: The economies of European countries are on the road to a new recession



Eventually, growth in the eurozone exceeded economists’ expectations. Both the 12.1% growth compared to the previous quarter recorded for the EU as a whole and the 12.7% for the euro area, were above the forecasts made by 9.6%. It is even more impressive growth from the US, where GDP grew by 7.4% over the previous quarter. However, this recovery has not offset the cumulative contraction of the European economy in the first two quarters of major restrictive measures. This is because the eurozone fell 3.7% in the first quarter and 11.8% in the second quarter. For this reason and on an annual basis (compared to the corresponding quarter last year) the eurozone economy recorded a recession of 4.3% The performance of each countryIf we try to look at the performance of each country, we will see that of the countries that have announced data, the most impressive recovery is France, with an increase of 18.2% compared to the previous quarter, Spain with an increase 16.7% and Italy with 16.1%, countries of course that had the biggest recession in the second quarter. For its part, Germany recorded a recovery of 8.2%. However, the different degree to which the countries were affected in the first and second quarters, is reflected in their current situation. It is indicative that while France is at -4.3% compared to the corresponding quarter of 2019, Germany at -4.2%, Italy at -4.7%, while Spain is at -8.7% and Czech Republic with Portugal at -5.8%. All this reflects the increase in consumption and the recovery of economic activity, after the gradual opening of European economies after May. Government measures to stimulate economic activity also contributed to this. Indicatively, in France, household consumption expenditure rose by 17.3% in the third quarter, but remained 2.1% below last year, while public consumption



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