E Pandemic Hits Europe Hard

Compared with the same quarter in the previous year, fourth-quarter real GDP decreased by 5.1% in the euro area and by 4.8% in the EU.

Among the larger economies, France, the euro zone’s second-largest economy, shrank 1.3% in the final three months of 2020, while Italy recorded a2% decline.

In Germany, robust exports helped Europe's largest economy eke out 0.1% growth in Q4, despite a second wave of the new coronavirus and new lockdowns.

Recent data indicate that lending to Euro Zone companies picked up in December, even though the Euro Zone has slipped back in recession. European banks have indicated that they were tightening access to credit amid fear of defaults amid a fresh wave of lockdowns.

The ECB is unlikely to cut its already-record-low interest rate policy because that would do little to revive the pandemic-hit eurozone economy.

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William K. 2 months ago Member's comment

The presumption of a rapid robust recovery is certainly what many are hoping for. The unfortunate bad news is that wishing and hoping do not make things happen. Even a lot of serious effort and real hard work do not assure that huge time of sunshine in the near future.

What may happen is that if any nation does recover much more rapidly there may be a big change in who is the world power. If it is China or India it will be "interesting" indeed.