With restrictions gradually lifted across Europe and people’s lives fully normalized, the euro area economy has gradually recovered to pre-pandemic levels, with several major EU economies showing the following recovery levels.
Italy’s economy grew 1.0 percent in the second quarter of 2022 from the previous three months, data showed, amid soaring prices and the Russia-Ukraine conflict. The euro zone’s third largest economy saw its GDP grow 4.6 percent year-on-year in the second quarter, compared with analysts’ expectations of 0.3 percent month-on-month and 3.7 percent year-on-year, Reuters reported. The figure was stronger than expected. Italy’s strong growth helped the eurozone as a whole break out of the economic slowdown, with GDP across the 19 eurozone countries rising 0.7 percent quarter-on-quarter and 4.0 percent year-on-year between April and June, making Italy the leading EU economy.
France stood out from the rest of Europe in 2021 with growth of 7 percent, Reuters reported, with the country growing at its fastest pace in 52 years as its economy quickly returned to pre-pandemic levels thanks to higher consumer spending. The French economy continued to rebound in the final three months of 2021, with gross domestic product rising 0.7 percent from the previous quarter.
The economic impact of the pandemic on Germany has been less severe than previously expected, Germany’s GTAI reported. Germany’s economy has grown steadily despite multiple global uncertainties. Growing domestic and international demand for “made in Germany” goods and services, coupled with its strong labor market, boosted Germany’s GDP by 0.8% in the first quarter of 2022, with its GDP returning to pre-pandemic levels. Germany won most of Europe’s greenfield projects in 2020 and 2021, with its reputation as a haven for foreign direct investment helping to keep its economy stable.
Spain is the only large European country that has failed to regain its pre-pandemic gross domestic product levels, according to ELMUNDO. Spain’s GDP is forecast to eke out 1.4% growth in 2023. That means it will take until 2024 for the Spanish economy to return to GDP levels already reached by other large European countries. Moreover, because forecasts involve a high degree of uncertainty (surging energy prices), the picture may not be as rosy as expected. “The economy is likely to stagnate or even decline slightly over the next few quarters due to increased uncertainty, rising inflation expectations and rising interest rates,” the study said.
As the protracted conflict between Russia and Ukraine continues to unfold, the energy crisis has been threatening countries in Europe, which has led to a variety of problems, especially in terms of energy supply and energy prices. Coupled with China’s regular shutdowns, the war has also slowed global supply chains. These factors have driven up prices across all sectors and commodity groups in Europe. Continued global uncertainty has dented demand for industrial goods. Moreover, the fourth wave of Omicron also weakened private consumption.
Post time: Oct-12-2022