The Bank of Korea: "Winter COVID Resurgence... Limits Economic Improvement in the US, Europe, and Others"

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] Although the economic growth rates of major countries such as the United States and Europe showed signs of recovery in the third quarter, the Bank of Korea stated that the economic improvement could stall this winter due to the resurgence of COVID-19.

On the 1st, the Bank of Korea said in its 'Overseas Economic Focus' report, "As the daily new confirmed cases in the US recently exceeded 80,000, some states have halted economic reopening measures," adding, "Concerns over the resurgence of COVID-19 and the ongoing deadlock in stimulus package negotiations may act as constraints on economic improvement."

The US third-quarter Gross Domestic Product (GDP) growth rate rebounded sharply to 33.1% (annualized). While consumption and employment continued to improve, production shifted to a decline, showing mixed trends among key economic indicators.

The Eurozone's economic improvement, centered on the service sector, stalled due to the resurgence of COVID-19. Strengthened quarantine measures, delays in economic recovery fund negotiations, and Brexit uncertainties may delay the recovery. In October, the Eurozone (19 countries using the euro) Purchasing Managers' Index (PMI) for all industries showed manufacturing continued its upward trend, but services fell below the baseline and declined.

In particular, Europe has recently seen a sharp increase in COVID-19 cases, leading to movement restrictions. France expanded movement restrictions nationwide, Germany imposed closures on restaurants, pubs, and cinemas, and France and Spain implemented nighttime curfews.

Japan's economy continues to suffer from weak production and consumption. However, since September, supported by expanded government aid for consumption recovery, outdoor activities have increased, and consumer sentiment is showing signs of improvement.

China's economy is continuing a relatively stable recovery. The Bank of Korea explained regarding the Chinese economy, "Exports have expanded, and consumption has improved, maintaining a favorable recovery trend, with the third-quarter growth rate increasing compared to the previous quarter." It also stated, "The Chinese Communist Party Central Committee held a plenary session (the 5th Plenary Session) for four days starting on the 26th of last month to discuss medium-term economic policy directions." The 5th Plenary Session is expected to finalize the 14th Five-Year Economic Development Plan centered on the 'dual circulation development strategy.'

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