Eurozone growth surged to a record high of 12.7%, but concerns are rising for the winter – Washington, District of Columbia

Washington, District of Columbia 2020-10-30 06:04:21 –

Frankfurt, Germany (AP) —The European economy grew unexpectedly by 12.7% in the third quarter as companies reopened …

Frankfurt, Germany (AP) — The European economy grew unexpectedly significantly by 12.7% in the third quarter as companies reopened after the severe blockade of the coronavirus, but increased infections eventually led to a new recession. Recovery is overshadowed by concerns about causing it. Month of the year.

The July-September quarter’s upturn, and future concerns, reflected the situation in the United States, with a strong recovery in the third quarter with the reopening, but did not dispel concerns during the winter.

The rebound reflected in the figures released on Friday was the largest increase since statistics began to be maintained in 1995. 19 European Union member states using the euro currency followed a 11.8% contraction in the second quarter. The period from April to June was the time when activity and association restrictions were the most stringent during the first wave of the pandemic. Many economists expected a rebound of about 10%.

Andrew Kenningham, chief European economist at Capital Economics, said in response to rising GDP in Germany and Italy, “these improvements will be washed away by the second wave of COVID-19 and the new blockade of the state. “.

The manufacturing industry is showing a stronger backlash than the service industry. Automakers such as Volkswagen and Daimler AG’s Mercedes-Benz have recovered their sales and profits, helped by exposure to China, where the virus had previously occurred but has since been largely contained.

On the other hand, businesses that rely on face-to-face interactions, such as restaurants, hotels, and airlines, are devastated and see only a small portion of their previous business. Due to the increase in infection, the German government has ordered the theaters, bars and restaurants to be closed from Monday to November 30th.

FlixMobility, a transportation company, said it would temporarily suspend Flixbus services in Germany, Austria and Switzerland and FlixTrain services in Germany from Tuesday, and said the government had requested people to restrict travel as much as possible. According to the company, FlixBus wanted to resume in time for the vacation. FlixTrain will resume “when the situation around Corona improves in 2021,” a spokeswoman for the company said in an email.

European Central Bank Governor Christine Lagarde expected Thursday to be “very negative” in November, adding that “fourth quarter numbers are likely to be negative.” Will it be negative? I don’t know at this time. “

Lagarde has shown that the ECB is working on a new package of stimuli that may be discussed at the bank’s December 10 meeting, and given the worsening situation, it will be implemented. There is almost no doubt. ” The ECB did not coordinate its stimulating efforts on Thursday. Through regular bond purchases, it has already sent € 1.35 trillion of newly printed funds into the economy.

The unemployment rate in 19 euro-using countries was stable at 8.3% in September compared to August. The rise in unemployment has been curbed by government-sponsored programs that pay most of workers’ salaries in a short time or without hours instead of being dismissed.

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