Europe Faces Economic Recovery Slowdown Concerns Amid Successive Lockdowns

[Image source=AP Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Concerns have emerged that the economic recovery in the Eurozone (19 countries using the euro) could slow down due to lockdown measures following the resurgence of COVID-19.

On the 24th (local time), according to CNN Business, the Eurozone Manufacturing Purchasing Managers' Index (PMI) released by IHS Markit last month showed a rebound compared to the previous month, which recorded the lowest level in six months, but the outlook remains uncertain.

This is because Austria and Slovakia have re-entered lockdowns due to the resurgence of COVID-19, and infections are rapidly increasing in Germany, the largest economy in Europe.

According to the weekly epidemiological report released by the World Health Organization (WHO) on the day, approximately 2.43 million new COVID-19 cases were reported in Europe from the 15th to the 21st, accounting for 67% of the world's new cases. The incidence rate per 100,000 population was also highest in Europe at 260.2.

Chris Williamson, chief economist at IHS Markit, said, "Contrary to expectations, business activity was strong this month, but next month, disruptions to economic activity due to the resurgence of COVID-19 are inevitable."

In fact, the Eurozone consumer confidence index plummeted this month. Business outlooks are also the worst since January. Jessica Hinds, Europe economist at Capital Economics, expressed concern, saying, "The situation in Germany will have the greatest impact on future economic growth. If Germany enters an economic lockdown, the European economy could fall into recession by the end of the year."

The German government has not yet implemented a full lockdown but plans to require workers from the 25th to present proof of COVID-19 vaccination, a negative test certificate, or confirmation of recovery after infection. Berlin will ban unvaccinated individuals from entering hotels, restaurants, and shops starting on the 27th.

Foreign media reported, "The mandatory vaccination policy is emerging in Germany," and added, "If this trend continues, there is a possibility that the German government will implement a full lockdown."

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