January 28, 2023

Dubai Week

Complete Dubai News World


5.2% growth in the European economy in 2021

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According to official data released on Monday, the eurozone economy grew strong last year, but the fall of the Omicron eruption and the energy crisis raises doubts about the group’s ability to sustain this momentum.

While the 5.2 percent growth rate is historically significant, it is not enough to offset the crisis of 2020, when the eurozone economy shrank by 6.4 percent due to the impact of the first shock of the Govt.

According to official data, the United States will grow 5.6 percent in 2021, while China will grow 8.1 percent.

Data from the agency “Eurostat” shows that the economy of the entire European Union in its 27 countries, including major non-euro economies such as Sweden and Poland, has grown by 5.9%.

Analysts say the recovery in Europe has shown strong data, especially in Germany, which saw negative growth in the last quarter of the year, while France, Spain and Italy made good progress.

On Wednesday, the German government lowered its forecast for economic growth to 2022, citing problems caused by Omicron and its effects on global supply chains, a major concern for Europe’s largest economic power.

The Ukraine crisis has raised fears that Russia, a major source of fossil fuels, could cut fuel supplies to Europe as demand for heating peaks, dulling public sentiment.

This exacerbates the challenges posed by the Omicron eruption, which led to a new wave of health restrictions and disrupted supply chains.

“We expect a weak start to 2022 as the number of infections increases and controls return, especially in the service sector in terms of human communications, cloud growth in the first quarter of the year,” said Rory Venice of the Oxford Economy.

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But he added that he expects strong recovery in the second and third quarters as supply chain easing eases and consumer demand picks up.

Analysts are closely monitoring inflation, which is at a historic level in the eurozone and could affect consumer demand if it is not controlled in the coming months.