
Eurozone Economic Outlook
October 27, 2020
The economy should have rebounded in Q3, following the unprecedented blow dealt by coronavirus-related lockdowns in Q2, although the pace of recovery likely slowed towards the end of the quarter. Monthly increases in industrial output in July-August and upbeat manufacturing activity in September point to a recovery in the industrial sector. However, the services PMI fell back into contractionary territory in September, which, coupled with still-downbeat consumer confidence, indicates that the tightening of restrictive measures in some countries weighed on services-sector activity at the tail-end of Q3. Moving to Q4, rising Covid-19 cases and further restrictions throughout the region in October hint at weakening dynamics. Meanwhile, the 2021 draft budgets sent to the European Commission show countries will adopt expansionary fiscal stances next year, with the aggregate deficit expected at around 6.0% of GDP.Eurozone Economic Growth
The economy should recover most of its lost output next year, supported by EU funding, ultra-loose monetary and fiscal stances, and strengthening external demand as the global economy reopens. That said, further restrictions, global trade tensions, a no-deal Brexit and rising levels of public debt pose downside risks. The economy is seen expanding 5.3% in 2021, which is down 0.2 percentage points from last month’s forecast. In 2022, GDP is seen increasing 2.9%.Eurozone Economy Data
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Eurozone Facts
Value | Change | Date | |
---|---|---|---|
Exchange Rate | 1.12 | 0.65 % | Dec 31 |
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Eurozone Economic News
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Eurozone: Unemployment rate ticks up in March as coronavirus blow starts to bite
April 30, 2020
Labor market conditions in the common currency bloc deteriorated in March, the first month when COVID-19 containment measures began to be extensively introduced, according to data released by Eurostat.
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Eurozone: Inflation slumps to over three-year low in April on plunging energy prices
April 30, 2020
Harmonized inflation fell to 0.4% in April from March’s 0.7%, marking the lowest reading since September 2016, according to a flash estimate released by Eurostat on 30 April.
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Eurozone: Coronavirus crisis strikes unprecedented blow to Eurozone economy in Q1
April 30, 2020
The Eurozone economy contracted sharply in the first quarter of this year, after marginally expanding in Q4 2019.
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Eurozone: ECB cuts rates on long-term liquidity operations and introduces new anti-pandemic auctions
April 30, 2020
On 30 April, the European Central Bank (ECB) decided to step up its efforts to combat the economic and financial shockwaves currently shaking the Euro area.
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Eurozone: Economic sentiment collapses at sharpest pace on record in April
April 29, 2020
Sentiment in the Eurozone tumbled at the sharpest pace in the survey’s history in April due to measures adopted to contain the spread of coronavirus, plunging to 67.0 points from March’s 94.2 points.