Daily Management Review

New lockdown in Germany brings down Eurozone's economy


Restrictions due to the third wave of the coronavirus in Germany have dragged other eurozone countries into the crisis, Deutsche Welle wrote, citing a report from the Federal Statistical Office.

Carlos Miguel Forero
Carlos Miguel Forero
According to statistics, for the first quarter of 2021, Germany's GDP collapsed by 1.7 percent, which affected the economy of neighboring states as well. Experts believe the main reason for the decline is the introduction of a new lockdown in Germany, which has paralysed consumer demand. Economists estimate that the combined GDP of the Eurozone countries fell by 0.6 percent in the first three months of 2021.

By the end of 2020 the German economy was gradually heading towards recovery. Maximum GDP growth in the backdrop of the pandemic was recorded in the third quarter of last year at 8.7 percent.

The third wave of the coronavirus hit Europe in mid-March. Experts cited new mutations of the virus, as well as an insufficient vaccination campaign, as the reasons for the spike in cases.

At the same time business activity index (PMI) in the industrial production of 19 Eurozone countries, according to a final estimate, rose to 62.9 points in April from 62.5 points in March, research organization Markit Economics said.

Analysts polled by the Daily FX had expected the index to rise to 63.3 points, which was in line with a preliminary estimate.

Nevertheless, April's level was also the highest since the statistics began in June 1997.

source: dw.de