Economic growth has been declining in Europe over the past two quarters. Experts attribute this to the widespread introduction of a self-isolation regime in most of the EU member states. For instance, lockdowns announced at the beginning of the year triggered a drop in important economic indicators by an average of 0.6%.
The level of German GDP also greatly influenced the decline in economic activity in the EU member states. Since many objects of industrial production and construction were suspended, the level of GDP in this country dropped by 1.7%.
French Finance Minister Bruno Le Maire noted that the implementation of the recovery plan for the EU economy is the main task of the European Union today. By the way, France surprised experts with quarterly results – GDP grew by 0.4% in this country, despite negative forecasts. This was a fairy good result considering the announced quarantine measures.
The Italian authorities hope for a quick economic recovery as well. The state parliament approved a plan for the country's economic recovery totaling €222.1 bln at the end of April 2021.
Investing in modernization and digitization, as well as the development of environmental protection are the priority areas of the economic recovery plan in Italy. These directions are primarily aimed at the tourism industry, which brings the country 13% of total gross income.
Recall that the Chinese and the US economies are currently experiencing another upswing. That is why the EU is concerned about the decline in its economic activity. According to French Finance Minister Bruno Le Maire, the country will be able to return to a healthy financial situation only after the crisis caused by the Covid-19 pandemic is over.