Business News

Germany’s GDP decline leaves the eurozone facing two economic challenges


Germany’s economy fell 1.7% in the first three months of this year as anti-coronavirus measures left the eurozone at a critical juncture.

The biggest economic downturn in Europe, which fluctuated from 0.5% in the previous quarter, came as statistics show that Spanish domestic production fell by 0.5% due to lower domestic consumption and production, while Italian results fell by 0 , 4%, gravity and low-level regional activities.

But France’s GDP exceeded 0.4% growth expectations in the first quarter, boosted by higher construction projects and lower domestic consumption.

Eurozone GDP figures to be released on Friday are expected to fall by 0.8%, leaving the bloc behind the US and China, which grew 1.6 and 0.6% respectively in the first quarter. Many economists expect the UK’s all-year-old agreement to be scrapped when its figures come up next month.

The euro was severely damaged after the war in the first six months of last year when the epidemic began, and then dipped again the last quarter of 2020 is 0.7%. The new quarter break can stop the second technological decline, called two consecutive phases of negative growth.

In Germany, the use of households reduces foreign reform. Economists surveyed by Reuters were expecting a GDP decline of 1.5%.

“The coronavirus crisis also led to the first economic slowdown in 2021,” the state census office said. “This particularly affected household spending, whereas shipping benefits the economy.”

Germany imposed closure laws in several parts of the country this month, forcing many shops and schools to close again, with the government authorizing it to seize control of local authorities who have not responded to coronavirus infections.

Since then, the incidence of daily infectious diseases has dropped to two weeks, giving hope that the recent expulsion of Covid-19 vaccine and more severe methods are helping to reduce third-party infections.

The German government this week has raised the bar by annual growth from 3 to 3.5%, predicting the amount of money consumers will spend once banned. The country’s economy declined 4.8% last year – a handful of other European economies – affected by the epidemic due to the increase in global trade which boosted its exports.

This week a daily vaccine of more than 1.1m is given in Germany. One jab has been given to more than 21.5m people, more than a quarter of the population, which raises hopes that the number of cases will drop enough to reduce the risk in May.

It is hoped that the euro zone will increase sharply in the second half of this year, as consumers will spend more money as countries begin to upgrade weapons and the vaccine will continue.

The European Central Bank predicts a 4% growth rate by the end of this year and a return to pre-epidemic economy in 2022 with a growth of 4.1 percent.

French President Emmanuel Macron this week outlined four measures to address the ban in the next two months. However, the use of French households declined sharply in March after the stagnation. Despite the return of the first quarter in France’s GDP, it remains 4.4 percent below the epidemic.

“We see a good recovery all year long, then, if you will, a two-pronged approach,” Philip Lane, chief economist at the ECB, told Dagens Industri TV on Thursday. “Looking back, the first few weeks have been very difficult for many companies. . . and the fact that we are coming from evil does not mean that we will ever get better again. ”


Source link

Related Articles

Leave a Reply

Back to top button