Economic growth in France and Spain exceeded expectations in the second quarter
Economic Developments in the Euro Zone
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Data released on Friday showed that the economies of France and Spain have emerged from the historical pandemic-driven downturn and grew faster than expected in the three months to June.
France’s GDP grew by 0.9% in the second quarter, higher than the 0.8% expected by economists surveyed by Reuters. The National Bureau of Statistics also raised the GDP data for the first quarter, showing that the economy was flat, which meant that the country narrowly avoided a double-dip recession in the winter months.
Spain’s second-quarter GDP increased by 2.8% from the previous quarter, exceeding the 2.2% expected by economists. This figure also marks a sharp rebound in Spain after a 0.4% decline in the first quarter.
The data strengthened analysts’ hopes that the euro zone began to put the damage of the coronavirus pandemic behind.
Economists expect Eurozone economy Although the transmission of the highly contagious Delta Coronavirus variant is expected to account for 90% of all Covid-19 in Europe, it will continue to expand rapidly for the rest of the year, rebounding from the double-dip recession in the winter and the infection in August.
“The vaccination rate is already high and it is steadily rising,” said Jean Pisani-Ferry, a researcher at Bruegel Think Tank and Peterson Institute for International Economics in Brussels. “There may be some new restrictions, but I think as long as there is no risk of overwhelming the hospital system, the government will not take lockdown measures.”
After falling behind other major economies in the past year to rebound from the pandemic, it is expected that the euro zone will begin to close the gap when GDP data is released later on Friday, and the growth rate in the second quarter will be between 1.5% and 2%.
Earlier this week, the U.S. reported that GDP growth in the second quarter An increase of 1.6% compared to the previous quarter, while China Earlier this month, it said its economy had grown by 1.3% over the same period.
The Chinese economy surpassed the output level before the epidemic last year, and the United States reached the same level in the second quarter of this year. However, the euro zone is expected to achieve this goal by the end of this year.
The French National Statistics Office stated that the French economy was boosted by a 1.1% increase in investment and a 0.9% increase in household spending.
However, because imports grew faster than exports, France’s GDP in the fourth quarter of 2019 was still 3.3% lower than its pre-pandemic level, so foreign trade made a slight negative contribution. The French government predicts that the economy will grow by 6% during this period. This year.
According to our data world, after a slow start, the European Union’s vaccination rate has accelerated in recent weeks. On Tuesday, the EU injected more vaccines per 100 people than the United States. The European Union reached 102.6 times and the United States 102.4 times.
French President Emmanuel Macron recently prompted a surge in vaccinations Introduce the law It is mandatory for medical staff to be vaccinated against Covid and to obtain a “health pass” to enter public places such as restaurants and bars.
According to data from the European Centers for Disease Control and Prevention, in the week ending July 25, the number of coronavirus infections across Europe reached 200 per 100,000 people, up from more than 150 people a week ago. It predicts that the ratio may reach 304 within two weeks.