• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
No Result
View All Result
Home Business and Economics Economics

Eurozone growth soars by record 12.7% as IMF cuts growth predictions for UK

The European rebound was the largest increase since statistics started in 1995.

Joe Mellor by Joe Mellor
2020-10-30 13:07
in Economics
FacebookTwitterLinkedinEmailWhatsapp

The European economy grew by an unexpectedly large 12.7% in the third quarter as companies reopened after severe coronavirus lockdowns,

This comes as The International Monetary Fund (IMF) has said the UK’s hopes of a v-shaped recovery will face serious headwinds from a second wave of coronavirus, and Brexit

The EU upturn in the July-September quarter — and the worries about what lies ahead — echoed the situation in the US, where reopenings led to strong third-quarter recovery but did not dispel fears for the winter months.

The European rebound was the largest increase since statistics started in 1995. It followed an 11.8% contraction in the second quarter in the 19 European Union member countries that use the euro currency.

The April-June period was when restrictions on activities and gatherings were most severe during the first wave of the pandemic.

Many economists had expected a rebound of around 10%.

The rebound was led by France, with an enormous 18.2%, followed by Spain with 16.7% and Italy with 16.1%.

RelatedPosts

‘Sometimes, reality bites’: Brexit has worsened the cost of living crisis

Russian rouble rebounds to hit near 2-year high vs euro

‘Unnerving:’ Economic growth slows as cost-of-living crisis continues to bite

Cost of living crisis: Inflation rises faster than expected

Oxford Economics

Rosie Colthorpe, European economist at Oxford Economics, said that “while these strong growth figures are good news, the recent reintroduction of strict containment measures across the bloc is likely to push the recovery into reverse”.

European Central Bank head Christine Lagarde said on Thursday that she expected November to be “very negative”, adding: “Most likely our fourth quarter number will be to the downside. Will it be negative? We don’t know at this point in time.”

Watch again: Lagarde on the ECB standing ready to act in response to the second wave of the coronavirus pic.twitter.com/p80mm88wPo

— European Central Bank (@ecb) October 30, 2020

Manufacturing companies have seen a stronger bounce back than services. Car makers like Volkswagen and Daimler AG’s Mercedes-Benz have seen sales and profits rebound, helped by their exposure to China, where the virus hit earlier but has since mostly been contained.

Businesses that rely on face-to-face interaction, such as restaurants, hotels and airlines, have been devastated and are seeing only a small fraction of their previous business. Rising infections led the German government to order cinemas, bars and restaurants to close from Monday until November 30.

Ms Lagarde indicated that the ECB was working on a new package of possible stimulus measures to be discussed at the bank’s December 10 meeting, and said there was “little doubt” that it would be implemented, given deteriorating conditions.

The ECB did not adjust its stimulus efforts on Thursday. It is already pumping 1.35 trillion euros (£1.22 trillion) in newly printed money into the economy through regular bond purchases, a step aimed at keeping affordable credit flowing to businesses.

The jobless rate in the 19 countries that use the euro was steady at 8.3% in September compared with August. The rise in unemployment has been held down by government support programmes that pay most of workers’ salaries if they are put on short hours or no hours instead of being laid off.

UK

The International Monetary Fund (IMF) has said the UK’s hopes of a v-shaped recovery will face serious headwinds from a second wave of coronavirus, and Brexit and the economy will not return to pre-pandemic levels in 2021.

Experts at the body said the initial sharp economic rebound was also being hurt by rising unemployment and stress on corporate balance sheets.

“We are at a time of high uncertainty. We are not projecting a return to pre-crisis levels in 2021,” said Kristalina Georgieva, the IMF’s managing director.

“We are very keen to advise everyone to be agile and flexible in policy response as the pandemic continues.”

The IMF now projects the UK economy will contract by 10.4% in 2020 and only grow by 5.7% next year, worse than previous expectations.

In June it projected a 10.2% contraction this year and 6.3% growth in 2021.

It said that persistent unemployment and lower productivity growth will keep gross domestic product (GDP) around 3% to 6% below its pre-pandemic trend for the medium term.

The IMF praised the UK “authorities’ aggressive policy response — one of the best examples of co-ordinated action globally”, but warned that policy support will need to continue to see the economy through Covid-19 and help it transition after Brexit.

Related: Banks scoop £65 million payday from 3 months of government-backed loans

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending
Abdollah

‘Rescue us’: Afghan teacher begs UK to help him escape Taliban

CHOMSKY: “If Corbyn had been elected, Britain would be pursuing a much more sane course”

What If We Got Rid Of Prisons?

More from TLE

Triathlete died when bicycle hit flooded pothole weeks after workman repaired wrong road

Glasgow Rangers star ready for Europa League clash

Cummings: National Insurance hike could hand Labour power

Brexit UK faces sluggish growth as global economy is “firing on all cylinders”

Set For Life Results for Monday 19 July 2021 Tonight’s winning numbers

6 things we learnt about Lisa Nandy’s vision for Britain

Paramedics dashed to help a woman seen sitting frozen on a park bench – which turned out to be a STATUE

Beer of the Week – Wild Card Brewery’s King of Hearts

Rashford ‘overwhelmed’ after Tory U-turn on free school meals

Hot beams can be seen shooting fromone of the Milky Way’s most ‘petulant’ stars

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.