the World Covid-19 the economic slump. While Germany came out, at least in the first quarter of 2020 is still relatively unscathed, it hits others much harder. The worst is also everywhere.
Paris/Rome (Reuters) – The unprecedented economic downturn due to the Corona pandemic has hit France and Italy particularly hard.
in the first quarter of 2020, the economy collapsed there in comparison to the previous quarter, respectively, to 5.3 percent, as the statistics agencies Insee and Istat said in Paris and Rome. Both countries, after Germany, the largest economies of the Eurozone. For Italy, a slightly lower (4,7), for France had been, however, a somewhat stronger (5,8) decline expected.
For comparison: Europe’s largest Economy had contracted in the first quarter of the year, within one-quarter by 2.2 percent. For the entire Eurozone, the EU statistics Agency Eurostat’s previous estimates of a magnitude of minus 3.8 percent. Similar to violent, such as France and Italy, it has economies among the major economies in the first quarter of the year, otherwise only the number four in the Euro area, Spain, with an estimated slump of 5.2 per cent caught.
Economists anticipate that the nation will be an economic balance sheet for the second quarter, significantly more violent, because the measures to contain the Corona of a pandemic have been taken, especially in this period of time. First data for the gross domestic product for the months of April to June are expected by the end of July.
Italy and France are particularly hard hit by the effects of the Corona-pandemic, is reflected in the forecasts for the year 2020. The economists at Commerzbank expect, for example, that Italy’s economic performance to fall by 9 percent behind the year 2019, and for France with a Minus of 7.5 per cent is predicted.
As in part an indirect consequence of the Corona pandemic is weakening, Inflation in the Euro area as a whole more clearly. The significant fall in energy prices plays a major role, is also due in part to the sluggish global economy.
told How Eurostat on Friday, the consumer prices in may, just 0.1 percent higher than a year earlier. This is the lowest inflation rate since June of 2016. Crucial to low Inflation, the energy prices are especially. You were 12.0 percent lower than a year earlier.
The European Central Bank (ECB) is aiming in the medium term, an increase in the price level of just under two percent. This goal is currently out of reach. Experts do not expect it fast something changes. The Corona-crisis is expected to dampen the development of wages and consumer demand, is an Argument.
