Eurozone economy shrank less than expected in coronavirus quarter
The Eurozone economy shrank less than expected in the coronavirus-struck first quarter of 2020, data released today confirmed.
The bloc’s economy shrank by 3.6 per cent since the last quarter of 2019, compared to a preliminary report in May that put the drop at 3.8 per cent.
Eurozone GDP was 3.1 per cent lower than the first quarter of 2019, Eurostat said today. The data agency had initially estimated the year-on-year decline to be 3.2 per cent.
However, it remains the largest decline on record since statistics began in 1995.
Trade, transport, accommodation and food saw the largest drops, while arts and entertainment both saw quarterly falls of 6.8 per cent.
However, declines were widespread, with coronavirus hitting government spending, household purchases, investments and exports.
It follows a eurozone investor sentiment survey that showed confidence is rising, with investors’ expectations at their highest level since November 2017.
Sentix’s eurozone index rose from minus 41.8 in April to minus 24.8 in May, still a dire reading. But investor expectations rose for their third consecutive month to 21.8 from minus three in April.
“The economy is waking up from its deep sleep. But the road to normality is long,” said Sentix managing director Manfred Huebner.
“For the eurozone, investors expect that within a year, just over 50 per cent of the slump can be made up.”