FRANKFURT, Germany: While the United States and China recorded strong economic growth in 2021, the European economy shrank by 0.6 percent during the first three months of the year.
Officials attributed Europe’s poor demonstration to its slow progress in vaccinating the public, leading to population stagnation and continued business closures.
The European contraction, however, was less than the 1% expected by the authorities.
By contrast, the U.S. economy grew 1.6 percent during the first quarter, driven by strong consumer demand. On an annualized basis, the United States grew at a rate of 6.4 percent.
For Europe, this is the second consecutive quarter of falling production and experts warn that the continent has once again fallen into recession. At the same time, other officials spoke with growing confidence about the expected economic growth in April and May.
In addition, there was good economic news in Europe. France recorded growth of 0.4 percent, compared to the previous quarter. However, experts were surprised by Germany, where the economy shrank by 1.7% higher than expected. It was noted that the German manufacturing sector suffered a slowdown due to interruptions in the supply of parts.
French authorities are cautiously optimistic, saying larger segments of the population are vaccinated against COVID-19. In addition, blocking restrictions are slowly being lifted, as the outdoor terraces of French cafes and restaurants may be reopened on May 19, along with museums, cinemas, theaters and concert halls, while Covid precautions are taken. .
However, Italy, Spain and Greece are preparing for the loss of the second summer tourist season.