The European Union economy is lagging behind the rest of the pack. According to new figures available, the US and the Chinese economy is way ahead of the bloc
European Union falls behind US and China economy
The European Union economy has continued to reduce in the last three months at 0 7% as against 0.9 in April 2020. More European businesses have been hit by fresh lockdown protocols initiated by several governments to slow down the spread of the COVID-19.
However, the drop in the quarterly figures wasn't as bad as feared by economic experts. It also doesn't show a positive outlook for the year as the forecast shows that the 19 countries that use the euro in the blog are still behind Top countries like China and the US is getting back to the pre-pandemic era.
Wednesday figures released by Statistics Agency Eurostat show a complicated forecast for the year as data suggests a gloomy future with a plunge of 12.3 % in the second quarter.
EU economy performing badly in key sectors
The birth of COVID-19 has forced most countries to introduce fresh lockdown and restrictions on intentional travel and business operations. Although industries like manufacturing and extractive have been able to adjust comfortably to sectors like entertainment and tourism.
The EU's biggest economy, Germany, grew to a miserly 0.2% in the fourth quarter, while France's economy dropped to 1.4%. Financial experts have expected the euro bloc to drop economic-wise by as much as 2.6%. However, it has shrunk to 6.7%.
This figure comes as disagreements arose over the slow pace of vaccine supply in the European zone, but the UK has a better vaccination supply and looks to bounce back faster. '' Though the data from the eurozone GDP was better than forecast, the future still looks bleak for business and financial institutions in the zone '' Nicole Mobile, a top financial analyst at Oxford.