[Economics] Eurozone growth slows during the fourth quarter by Ómicron

[#CeLTiXxX]

France, the bloc's second largest economy, recorded quarterly growth of 0.7%, while Italy grew 0.6% in the quarter, while Germany, Austria and Latvia showed a contraction of their economies in the last three months of the anus. The growth of the Gross Domestic Product (GDP) of the Eurozone slowed down in the fourth quarter due to the impact of the Omicron variant of the coronavirus, although the impact was stronger in Germany than in France or Italy. According to preliminary data from the European Statistical Office (Eurostat), the Eurozone and the community bloc grew by 0.3% and 0.4%, respectively, compared to expansions of 2.3% and 2.2%. recorded in the previous three months. The joint year-on-year growth estimate was 5.2% in 2021 after the 5.9% drop suffered in 2020 as a result of the impact of the Covid-19 pandemic. Year-on-year, GDP in the eurozone increased by 4.6% in the fourth quarter, compared to the same period in 2020, while in the European Union it grew by 4.8%. The agency reflects that the slowdown observed in the fourth quarter, from October to December 2021, was caused by a decline of 0.7% observed in Germany, the largest economy in the European Union. "The wave (of coronavirus) in the autumn left clear marks on the euro economy," said Christoph Weil, an economist at Commerzbank. "There were significant differences between the euro countries due to the pandemic. In the spring the Omicron wave should have receded and the economy should grow stronger again," he added.

 

 

France, which represents the bloc's second largest economy, posted quarterly growth of 0.7% and year-on-year expansion of 5.4%. For its part, Italy, the third largest economy, grew 0.6% in the quarter and 6.4% in the year. "The recent lifting of Covid-19 restrictions in many European countries should help restore business and economic growth," said Rachel Barton, an economist at Accenture. Of the block of countries, only Germany, Austria and Latvia showed a contraction of their economies in the last three months of the year. Spain led growth in that period with an expansion of 2%, followed by Portugal with 1.6% and Sweden with 1.4%. The data coincide with those presented by the economic vice president of the European Commission, Valdis Dombrovskis, as well as the Commissioner for the Economy, Paolo Gentiloni. The agency warned that these data are subject to change and revision. Europe also faces uncertainty due to the tensions generated by the presence of Russian troops on the Ukrainian border, which raises fears of a possible invasion. This factors into unusually high natural gas prices in Europe, with Russia, Europe's main gas supplier, in the thick of the conflict. Likewise, the inflation rate in the Eurozone reached a record 5% and will be the central theme for the next meeting of those responsible for banking policy that meet this Thursday.

 

https://www.france24.com/es/programas/economía/20220131-crecimiento-eurozona-pandemia-omicron

Edited February 7, 2022 by #CeLTiXxX