Overall, real global GDP (excluding the EU) is projected to have contracted by 3.4% in 2020 and is set to rebound by 5.2% and 3.8% in 2021 and 2022, respectively.
Just as the crisis brought about by the pandemic was broad-based but uneven, so was the bounce back. Spain’s and the United Kingdom’s economies were hit hard by the pandemic last year, but would both expect huge economic recoveries in 2021. The euro zone economy contracted in the first quarter of 2021 as countries implemented new lockdowns and restrictions amid a third wave of coronavirus infections. Gross domestic product in the region fell by 0.6% quarter-on-quarter, according to preliminary data released by Europe’s statistics office Eurostat. It marks the second consecutive quarter of contractions, meaning the region is in a technical recession, although economists are optimistic about growth looking ahead.
According to an estimate from data provider IHS Markit, business activity in April across the 19 countries that use the euro grew at its fastest pace since last July. Unemployment declined slightly in March and consumption has responded strongly to the slightest easing of restrictions, which is a positive sign of what’s to come. Germany’s GDP shrank 1.7% between January and March after expanding in the final three months of last year. The decline was driven by weak household spending due to COVID-19 restrictions. France’s GDP edged 0.4% higher in the first quarter, helped by increased business investment and a boost to household spending. The euro area economy to return to its pre-crisis level by the end of this year.
[infogram id=”25b2e621-262c-4369-9b3d-265cf8781595″ prefix=”f11″ format=”interactive” title=”2021 Q2: 3 GDP Growth 2019-2021, Selected Regions”]
