The euro area’s economy has proven resilient to the Omicron variant of the coronavirus and the persistent supply chain disruptions late last year, despite divisions in the region speeding up. grew faster in France, Spain and Italy than the traditional European economic engine, Germany.
Gross domestic product, the broadest measure of economic output, grew by 0.3% in the final quarter of 2021 from the previous three-month period, Eurostat, Europe’s statistics agency, reported on Wednesday. Two. That’s a slower pace than in previous quarters of 2021, but evidence that the continent’s economy is learning to cope with the pandemic.
“The fact that GDP continues to grow is a sign of the strength of the economy,” said Bert Colijn, chief economist at ING.
When compared with the same period last year, the euro area – the 19 countries that use the euro – grew by 4.6%, Eurostat said.
With its export-oriented economy and large manufacturing sector, Germany feels the power of its global supply chain is more congested than many of its neighbours. The country’s economy contracted 0.7 percent in the final months of 2021 and ended the year with an annual growth rate of 2.8 percent. The French economy grew 0.7 percent in the final quarter and 7% for the year.
Economists expect growth across Europe to return to pre-pandemic levels earlier this year, but at a rate that varies from country to country. Many factors will play a part in the speed of recovery, including pandemic restrictions and countries’ dependence on manufacturing, which remains hampered by supply contingencies.
In general, Europe recovers more slowly USA, where the economy last year grew at its fastest pace since 1984, although inflation is tapering a recovery and people remain cautious about the coronavirus. The US economy expands 1.7% for the last three months of 2021 and 5.7% for the full year.
https://www.nytimes.com/2022/01/31/business/europe-economy-omicron.html European economy shows resilience to storm Omicron