Eurozone Economic Outlook: Waiting for Recovery (March 2021)
Economic activity dropped less than expected in Q4 2020, yet the recovery will start only later this year.
Economic activity dropped less than expected in Q4 2020, yet the recovery will start only later this year.
After a sharp recovery in Q3, economic activity will decrease again in Q4 due to new lockdowns.
In the second quarter, global economic activity declined sharply due to COVID-19 pandemic containment measures. International merchandise trade decreased in volume by historic 12.5%, despite a rebound in June (+7.6%).
The lockdown measures in the euro area from mid-March onwards have forced many companies to slow abruptly down their activity. This caused GDP to fall remarkably in Q1 2020 by 3.6%. The greatest negative contribution came from private consumption. Households reduced their activities in response to rising Covid-19 infection numbers and following governments’ orders or advices on staying at home and respecting social distancing rules.