Germany turned out to be the only country in the eurozone to show stable economic growth in September. Bloomberg calls it the only prosperous country in the region, while the rest of the states continue to suffer.
Growth in global trade is helping to recover from the pandemic and pulling the export-oriented economy of Germany, while many countries in the southern EU are lagging behind as they rely heavily on tourism and the service market. These sectors have been particularly hard hit by the pandemic and the constraints associated with it, and continue to sag now as the number of cases is on the rise again.
Travel restrictions are now beginning to return to Europe, with some countries closing bars and restaurants. For France, this means another reduction in production in the private sector, and in Italy, production activity has practically stopped.
Economists believe that in the fourth quarter of 2020, the EU economy will decline again. вЂњMuch will depend on whether the second wave of viral infections can be controlled and the restrictions on social distancing can be relaxed to reactivate the service sector,вЂќ said Chris Williamson, an economist at IHS Markit.
Industrial production in the eurozone has soared to its highest level in more than two years, according to IHS Markit. In September 2020, the Purchasing Managers Index (PMI) in the euro area climbed to 53.7 points. In August, it was at 51.7 points.