According to a preliminary estimate published by Eurostat on Tuesday, the Euro area, a group of countries that use the Euro as currency, saw a drop in its GDP by 0.7% in the fourth quarter of 2020.
The European Commission agency said that the decline in the Euro area’s GDP is related to the latest set of lockdown measures reimposed in the region to prevent the spread of the COVID-19 virus and new emerging variants. Meanwhile, the European Union’s GDP plunged by 0.5% in the fourth quarter of 2020.
The Euro area, which consists of 19 countries from the bloc, witnessed its biggest dive since 1995 after its GDP fell by 11.7 in the second quarter of 2020.
However, the economy rebounded with a growth of 12.4% in the third quarter. But when the region started to reimpose COVID-19 restrictions in the wake of the second-wave, it predicted that the GDP would slide down again by a huge margin. Though the Euro area managed to avert the worst, its GDP did go down by 0.7% in the fourth quarter.
Austria, Italy Recorded the Biggest Plunge
Austria and Italy contributed the most as their economy dropped by a whopping 4.3% and 2.0%, respectively, while France saw a degrowth of -1.3%. Europe’s biggest economy Germany’s GDP grew by 0.1% in the fourth quarter, according to Eurostat’s estimate. The COVID-19-induced lockdowns have ravaged most parts of the world since the pandemic began earlier last year. Still, Europe, a region largely dependent on tourism, suffered the most inflicting wounds among all other major economies.
The lockdowns were recently reimposed after detecting new variants of the COVID-19 virus in the region, which forced countries to shut down non-essential services to prevent the rapid spread of the disease. Several EU nations have also restricted international travel, even for citizens who reside within the bloc. Europe has begun the inoculation campaign for its 450 million people. However, it has been mired in controversy over distribution and production delays.
Austria Moves to Contain COVID-19
While Austria has struggled to contain the second wave of the coronavirus pandemic, it is fast emerging as a world leader in testing as a way to reopen schools and businesses.
The small nation with a population of just under nine million tested three million people last week alone. The mass-testing strategy formed a key plank for getting pupils back into the classroom.
Half of those three million tests were administered in schools, where twice-weekly tests have been mandatory since in-person lessons restarted earlier this month.
Only a tiny percentage of parents have refused to have their children tested under the scheme — and those children are not allowed to return to school.
The other 1.5 million tests were carried out at more than 500 dedicated centers, around 900 pharmacies, and roughly 1,000 companies.
“Our strategy is to have a high frequency of tests and to make them very easily accessible — it’s the only way to keep the pandemic in check,” Katharina Reich, the health ministry’s chief medical officer, told AFP.
A negative test result, no older than 48 hours, is now required at a range of locations — from hair salons to elderly care homes or ski resorts.