Rolling coverage of the latest economic and financial news
- Latest: Eurozone shrank 0.6% in January-March, meaning double-dip recession
- Germany shrank 1.7% in Q1
- Italian GDP down 0.4%
- Spain’s GDP fell 0.5% in January-March
- Intro: French GDP grew 0.4% in first quarter of 2021
- Yesterday, US GDP grew by 1.6% (6.4% annualised)
The eurozone’s fall back into recession also show the importance of vaccinating its population, so that economies can reopen and tourism can restart this summer.
Robert Alster, CIO at wealth manager Close Brothers Asset Management, says:
“Put simply, the EU is dragging its feet when it comes to its economic recovery. However, speed aside, it is moving in the right direction – particularly as the vaccine roll out gathers pace.
The summer months are crucial for southern Europe’s road to recovery, with countries such as Spain, Italy and Greece heavily reliant on tourism. Hospitality businesses in particular will be banking on some sort of rebound, if not we could see a late summer of discontent aimed at Brussels.
Here’s a table with more detail of today’s eurozone GDP report:
