Euro zone GDP q1 2021 amid new covid lockdowns

Individuals stroll previous the closed iconic brasserie Les Deux Magots

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LONDON — The euro zone economic system contracted within the first quarter of 2021, as nations applied new lockdowns and restrictions amid a 3rd wave of coronavirus infections.

Gross home product (GDP) within the area fell by 0.6% quarter-on-quarter, based on preliminary knowledge launched by Europe’s statistics workplace Eurostat.

A lot of the area’s largest economies — Germany, Italy and Spain — all noticed a decline in exercise throughout the first three months of the yr.

French shock

Contractions elsewhere

Nonetheless, in Germany, the economic system contracted 1.7% over the identical interval. It is worse than the 1.5% decline that analysts have been anticipating, based on knowledge from Reuters.

The nation has been severely hit by the third wave and totally different approaches amongst its numerous areas have additional sophisticated its combat towards the pandemic.

In Italy, the most recent GDP numbers confirmed a contraction of 0.4% for the quarter, barely higher than expectations. The Spanish economic system additionally shrunk over the identical interval, 0.5%.

Trying forward, nonetheless, economists are assured about 2021 for the euro zone. Nations within the area are on account of begin receiving EU-wide Covid help funds within the second half of the yr, and the vaccination marketing campaign has accelerated considerably for the reason that begin of 2021.

The European Union expects to have 70% of the grownup inhabitants vaccinated this summer time and tourism-reliant nations are hoping {that a} bigger variety of vaccinated individuals will enable them to have a extra profitable summer time season this yr.

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