Europe’s economy grew by a surprising 12.7 percent in the third quarter of 2020, defying worst-case predictions about the pandemic’s short-term market impact even as millions of households continue to suffer according to Washington Post.
Economists attributed Europe’s unexpectedly large rebound — the biggest increase since the European Union began counting in 1995 — to the easing of lockdowns this summer and the reopening of many businesses. But as cases now surge again around the continent — and countries like France, Germany and Italy, in turn, reimpose restrictions on economies and communities — analysts worry that an even bleaker winter economy could become, Washington Post notes.
Still, the numbers released Friday by Eurostat, the E.U.’s statistics agency, have offered some cause for cheer. Eurostat’s figures cover 19 E.U. countries that use the euro as their currency. The euro zone bloc recorded an 11.8 percent contraction in the second quarter of 2020. Economists had consequently predicted growth of only about 10 percent in the third quarter. Instead, France, followed by Spain and Italy, led the continent’s significant rebound.
Looking ahead, European Central Bank head Christine Lagarde on Thursday said she expected November’s numbers to be “very negative,” the Associated Press reported.