Daily Management Review

Experts: Europe's economy exceeds forecasts


Economic growth in the Eurozone has surpassed experts' expectations as the region has shown a high rate of recovery from the effects of the COVID-19 pandemic, CNBC reports.

Thus, business activity index (PMI), according to the IHS Markit survey of top managers of large companies, rose from 53.2 to 53.7 points in April this year.

According to the rules of rating compilers, a score above 50 points indicates that a country (or group of countries) is experiencing an increase in business activity.

As the chief economist of IHS Markit commented, the results of the eurozone countries were unexpected for analysts: the authorities of many countries in the region have re-implemented both restrictive measures and lockdowns in order to curb the spread of the coronavirus.

Usually, he noted, in such harsh conditions, both a decline in business activity and an economic downturn occur. But in reality we are seeing the opposite.

In addition, corporations surveyed by IHS Markit said they have positive expectations for the near future.

In the forecast: services spending will record growth in the near future compared to the last few months, when industry and manufacturing were the main drivers of economic growth.

source: cnbc.com