Europe's recovery from the crisis triggered by the СЃoronavirus pandemic and the collapse of oil prices has stalled. According to Bloomberg, Spain and Italy may have been responsible for the decline in their GDP.
According to the IHS Markit index, which is an indicator of economic health, in August production grew only in manufacturing, while the larger service sector saw only a slight increase.
Economist Chris Williamson finds that the momentum for recovery in the eurozone as a whole has been lost. вЂњIt is likely to still be a strong recovery from the collapse of the spring,вЂќ he says and stresses that EU authorities still need to focus on recovery policy.
The EU economy contracted by a record 14.4 percent per annum in the second quarter of 2020. This is the strongest decline since statistics began (since 1995). In mid-summer, EU leaders agreed on a rescue plan for 750 billion euros. Most of that money вЂ” 500 billion вЂ” will go to non-refundable grants for the EU countries most affected by the pandemic.