Impact of COVID-19...? Eurozone Q1 Growth Rate Down 3.8% (Update)

On the 20th of last month, volunteer workers at the city hall in Dresden, Saxony, Germany, are distributing masks to citizens. [Image source=AP Yonhap News]

[Asia Economy Reporter Lee Chun-hee] The economic growth rates of European countries all declined in the first quarter, according to compiled data. This appears to be a consequence of the spread of the novel coronavirus infection (COVID-19).

Eurostat, the statistical office of the European Union (EU), announced on the 15th (local time) that the first-quarter gross domestic product (GDP) of the Eurozone (19 countries using the euro) decreased by 3.8% quarter-on-quarter (provisional). This matches the expert forecast of a 3.8% decline.

The Eurozone's first-quarter GDP fell by 3.2% compared to the same period last year. This marks a shift to a decline after a 1.0% increase in the previous quarter.

Germany also experienced a decrease in first-quarter GDP. The Federal Statistical Office of Germany announced on the 15th that Germany's first-quarter GDP was provisionally estimated to have decreased by 2.2% quarter-on-quarter. This is the largest quarterly decline since the 4.7% drop in the first quarter of 2009 during the global financial crisis.

There are also forecasts that Germany's economic growth rate in the second quarter will worsen compared to the first quarter. Currently, Germany has been implementing public life restrictions such as store closures since March 16 and has been gradually easing these restrictions since the 20th of last month.

The Federal Statistical Office of Germany also revised and announced that the fourth-quarter GDP of last year changed from a 0.0% quarter-on-quarter variation to a 0.1% decrease.

Other European countries also showed a decline in GDP simultaneously. The Netherlands Statistics Office provisionally estimated that the first-quarter GDP would decrease by 1.7% quarter-on-quarter, and the Czech Statistical Office also provisionally announced that the first-quarter GDP would decline by 3.6% quarter-on-quarter.

This content was produced with the assistance of AI translation services.