World Business Watch: Euro Zone Fourth-Quarter GDP Falls Less Than Expected
Economists say that the fourth quarter slump was milder than the first half of the year as restrictive measures were adopted.
Amid the covid-19 pandemic that took hold of the entire world, many countries are now vaccinating and evaluating the state of their economies post nationwide lockdowns. The Eurozone economy has contracted less than what was expected in the fourth quarter of 2020. Initial EU estimates showed that it will head to another steeper decline in the first quarter of this year. According to preliminary estimates, the GDP of 19 countries that share the Eurozone fell by 0.7%, for a 5.1% year-on-year decline.
Also watch: World Business Watch: Japan’s service sector slump deepens as COVID-19 emergency hits business
Major players like France and Italy pulled down their overall GDP with quarterly declines of 1.3% and 2% respectively. Meanwhile, Germany inched up by 0.1% in the third quarter and Spain grew by 0.4%. Economists say that the fourth quarter slump was milder than the first half of the year as restrictive measures were adopted and were less severe than earlier.
Eurostat said that this was the deepest contraction since 1995, beating even the 2009 one that resulted in a financial crisis which was about 4.3% decline. In other news, the country is also expecting the arrival of vaccines in full force.
We are working with pharmaceutical companies to ensure vaccines are delivered to Europeans. #BioNTech/@pfizer will deliver 75 million of additional doses in the second quarter of the year – and up to 600 millions in total in 2021.
— Ursula von der Leyen (@vonderleyen) February 1, 2021
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