Europe's economy shrinks in first quarter as US rolls ahead

The European economy contracted 0.6 per cent in the first three months of the year as slow vaccine rollouts and extended lockdowns delayed a hoped-for recovery. The second straight quarter of falling output, following contraction in the fourth quarter of 2021, confirms Europes double-dip pandemic recession.


PTI | Frankfurt | Updated: 30-04-2021 14:47 IST | Created: 30-04-2021 14:47 IST
Europe's economy shrinks in first quarter as US rolls ahead
  • Country:
  • Germany

The European economy contracted 0.6 per cent in the first three months of the year as slow vaccine rollouts and extended lockdowns delayed a hoped-for recovery. The contraction in the 19 countries that use the euro currency compares to a robust rebound underway in the United States. Growth figures announced Thursday showed the US grew 1.6 per cent during the first quarter, with business supported by strong consumer demand. On an annualised basis, the US grew 6.4 per cent. The second straight quarter of falling output, following contraction in the fourth quarter of 2021, confirms Europe's double-dip pandemic recession. Two quarters of falling output is one definition of a recession. One factor in Europe is a slow vaccine rollout and prolonged lockdowns. Another is less government support for the economy. US President Joe Biden's USD 1.9 billion relief package, coupled with spending from earlier support efforts, will mean additional cash support of about 11-12 per cent of annual economic output for this year, according to economists at UniCredit bank. By contrast, the European fiscal stimulus amounts to about 6 per cent of gross domestic product.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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