Eurozone enters recession but better days ahead

SourceKuwait Times

BRUSSELS: The eurozone economy fell into a second recession in less than a year in the first quarter, data showed on Friday, as slow vaccinations and pandemic lockdowns stopped a rebound. The 0.6 percent contraction was in stark contrast to the US, where the economy roared forward in the same period, posting annualized growth of 6.4 percent. China has also turned the corner from the coronavirus pandemic with a 18.3-percent explosion in gross domestic product growth on an annual basis.

Europe has been hit hard by a second and third wave of the coronavirus pandemic, with multiple attempts to reopen the economy cut short by new outbreaks.

But more recent data has given Europeans confidence that the recession will be short-lived, with surveys showing that manufacturing is now booming. “While late out of the starting blocks, the eurozone is set for its start to the pandemic rebound,” said Bert Colijn, senior economist at ING.

And with the vaccination campaign finally getting more...