HomeWorldWorldNew eurozone recession due to pandemic restrictions: GDP lost 0.6% in the...

New eurozone recession due to pandemic restrictions: GDP lost 0.6% in the first quarter of 2021

The new figures accompany the fall of 0.7% in the economy in the last three months of 2020, due to the impact of measures to contain coronavirus outbreaks.

EFE / EPA / FABIO FRUSTACI / Archive

The eurozone economy returned to recession after suffering a 0.6% contraction of GDP between January and March, after falling 0.7% in the last quarter of 2020, due to the impact of measures to contain the pandemic outbreaks. coronavirus, according to preliminary data published by Eurostat.

In turn, the economy of the entire European Union (EU) too reentry recession with 0.4% of GDP contraction in the first quarter of 2021, after the fall of the 0.5% between October and December 2020.

Compared to the same quarter of 2020, eurozone GDP contracted by 1.8%, while the twenty-seven retreated one 1.7%.

Among the countries for which data were available, Portugal (-3.3%) registered the biggest contraction of GDP, followed by Latvia (-2.6%) Y Germany (-1.7%), while Lithuania (+ 1.8%) Y Sweden (+ 1.1%) They were the fastest growing economies in the EU.

EFE / EPA / PHILIPP GUELLAND / Archive

EFE / EPA / PHILIPP GUELLAND / Archive

The negative data of the German economy are known after the moderate growth registered in the last quarter of 2020, when the GDP grew only in one 0.5%. The Chancellor’s Government, Angela Merkel, provides for a Increase of 3.5% of GDP in 2021.

Throughout 2020, the German economy contracted by 5%, in a year in which the pandemic caused a 9.7% decrease in the second quarter of the year, partially offset by the strong recovery of 8.7% in the third.

Year-on-year growth rates, compared to the same quarter of 2020, were negative for all EU countries except France (+ 1.5%) and Lithuania (+ 1%).

EFE / EPA / CHRISTOPHE PETIT TESSON / Archive

EFE / EPA / CHRISTOPHE PETIT TESSON / Archive

In the case of Spain, GDP registered a 0.5% retraction in the first quarter, after the stagnation observed in the fourth quarter of 2020. Compared to the first three months of last year, the Spanish economy fell 4.3%.

According to the advance released this Friday by the National Institute of Statistics (INE), national demand (consumption and investment) subtracted 0.9 point from the GDP increase, negative contribution partially offset by the positive contribution of 0.4 point of external demand (exports and imports).

However, INE explains that most of the short-term indicators collected are of January and February, which were the worst months of the quarter, so the future revision of the data is expected to be of a greater magnitude than usual.

Calle Preciados in Madrid at the beginning of January sales.  EFE / Ballesteros / Archive

Calle Preciados in Madrid at the beginning of January sales. EFE / Ballesteros / Archive

Compared to the previous year, the GDP fell 4.3%, compared to 8.9% in the previous quarter, moderation as a result of starting to compare with 2020, the year in which the pandemic has already hit the economy.

For its part, Italy’s GDP fell 0.4% in the first quarter of the year compared to the previous three months and a 1.4% year on year, according to an estimate released on Friday by the Italian National Institute of Statistics (Istat).

Thus, the Italian economy experienced a new contraction in the first quarter of the year, although in an entity more restrained compared to that recorded in the fourth quarter of 2020, when GDP fell two%.

(With information from EFE and Europa Press)

Related news

Trending