Growth: European economy still lags behind Chinese and American rivals

Her text message, exchanged with Pfizer Institute CEO Albert Bourla, recently questioned and showered conspiracy theories, but European Commission President Ursula von der Leyen said of enthusiasm and relief. A certain euro zone. Eurozone’s gross domestic product (GDP) grew 5.2% last year, according to the first estimates released Monday by Eurostat, the agency responsible for European-level statistics. A historical figure confirming the recovery of the European economy after the collapse associated with the Covid-19 pandemic. According to the Eurostat, GDP fell 6.4% in 19 countries that share a single currency and 5.9% in the European Union in 2020.

These results were found to exceed the estimates established by the Commission in November, which is enough to make Ursula von Leyen smile. Given the results of the first three quarters of the year, growth of 5% was envisioned (up 2.2% and 2.3% over the last six months). The European Union expected a € 1,824.3 billion recovery plan adopted in July 2020 aimed at funding the recovery of member countries’ economies.

Aggressive US, strong China

If the slight improvement compared to expectations is satisfactory for the head of state of Europe, it will not erase the progress made by rivals in China and the United States. China will end 2021 with 8.1% growth after a 2.3% increase in 2020. After declining 3.5 points in 2020, US GDP rose to 5.7% last year.

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To revive America’s growth, President Donald Trump and President Joe Biden have embarked on aggressive fiscal policy. Many financial support plans for recovery: Care Act (2.2 trillion). American Rescue Plan (1.9 trillion) or Covid Relief Package (900 billion). The US government has also made efforts to organize a national vaccination campaign since spring 2020. However, this economic recovery is accompanied by record inflation. According to the Ministry of Labor, consumer prices have risen 7%, the highest since June 1982.

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As part of that, China recorded 8.1% growth in 2021, surpassing its 6% forecast. Despite the crisis in the real estate sector, the difficulties of small businesses, and the resurgence of the coronavirus epidemic, Asian powers have made tremendous progress. If the Chinese economy started the year at a blazing pace (first quarter growth of + 18.3%), it ended at a level that did not reach for a year and a half (last semester growth of only 4%). The services sector has not returned to pre-pandemic growth, and the People’s Bank of China (PBC) has been forced to lower interest rates to mitigate the economic slowdown. Nevertheless, the country led by Xi Jinping continues to be the second largest economy in the world.


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