The fall in production in the 19 euro countries was less than the 1% contraction expected by economists, but still well below the uptick in the United States and China, two other pillars of the world economy.
Figures announced Thursday show that the US economy is in the middle of the world’s economy. But it’s not the first time It grew by 1. 6% in the first quarter, with customer demand-backed activity, while the United States grew by 6. 4% annually.
In Europe, this is the consecutive quarter of the decline in production, meaning that the region fell back into recession despite an uptick in expansion from July to September last year. The most recent knowledge covers the quarter ended March 31, and economists say the economy is on the brink of recovery.
France recorded an unforeseen expansion of 0. 4% compared to the previous quarter, while the greatest negative wonder came from Germany, the continent’s largest economy, whose activity fell 1. 7% more than expected, as the productive sector was affected by a disruption in portions. in addition to facilities and due to restrictions on pandemic-related activities.
The French government expects COVID-19 customers in the country for next month, when a higher proportion of the population is vaccinated. The government is slowly starting to lift partial blockades, despite an even high number of coronavirus and COVID cases. -19 hospitalized patients. President Emmanuel Macron said Thursday that the outdoor terraces of French cafes and restaurants could reopen on 19 May, as well as museums, cinemas, theatres and concert halls under certain conditions.
Concerns about a moment imaginable in the consecutive lost holiday season have tarnished the prospects of the Mediterranean countries, Italy, Spain and Greece, which rely heavily on tourism. Greece has lifted quarantine restrictions for visitors from EU countries and will allow restaurants and cafes to reopen for the foreign service. May 3. Travel revenue fell by 75% last year.
Economists said they expected a recovery in the coming weeks as vaccines accelerated. The International Monetary Fund forecasts a 4. 4% expansion for the euro throughout the year.
“Current knowledge of GDP for the first quarter recommends resistance from the EU economy and sends encouraging short-term outlook symptoms,” said Oxford Economics economist Maddalena Martini.
Katerina Grapsa, owner of an ornamental goods store in Athens, expressed optimism as she arranged her wares, adding candles for Orthodox Easter, which is Sunday.
“From now on we expect things to get better, thanks to vaccines, thanks to the measures,” he said. “If tourism comes and they don’t bring us COVID but they leave us money, it will be much better. “
Andreas Iosifidis, an egg trader at the Athens produce market, said he “is older because last year unprecedented. This year, it’s coming to an end, we’re used to it and we’re going shopping. “
So far, the unemployment rate in Europe has only exceeded 8. 1% in March, thanks to extensive licensing assistance programmes that help businesses remain workers. The United States saw its unemployment rate fall to 6. 0% after reaching 14. 8% at worst. pandemic.
The slow deployment of vaccines, which has led to prolonged lockouts, is a major factor holding back the recovery in Europe. Another is less tax for the economy thanks to the government’s new spending. According to economists at UniCredit Bank, US President Joe Biden billion’s $1. 9, combined with spending on previous efforts, will result in more money than about 11-12% of annual economic output for this year. On the other hand, European fiscal stimulus accounts for approximately 6% of gross domestic product, even after considering Europe’s broader social protection network.
China was first affected through the pandemic, but controlled it through strict public aptitude measures and the only primary economy that grew in 2020. The United States has been greatly affected by the virus, but has implemented vaccines at an immediate rate.
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Associated Press newscasts Srdjan Nedeljkovic and Lefteris Pitarakis contributed from Athens.
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