Live Updates: COVID-19 Cases
  • World 11,856,591
    World
    Confirmed: 11,856,591
    Active: 4,496,722
    Recovered: 6,816,136
    Death: 543,733
  • USA 3,070,848
    USA
    Confirmed: 3,070,848
    Active: 1,597,888
    Recovered: 1,339,365
    Death: 133,595
  • Brazil 1,643,539
    Brazil
    Confirmed: 1,643,539
    Active: 505,217
    Recovered: 1,072,229
    Death: 66,093
  • India 743,481
    India
    Confirmed: 743,481
    Active: 265,783
    Recovered: 457,045
    Death: 20,653
  • Russia 694,230
    Russia
    Confirmed: 694,230
    Active: 219,856
    Recovered: 463,880
    Death: 10,494
  • Peru 305,703
    Peru
    Confirmed: 305,703
    Active: 97,312
    Recovered: 197,619
    Death: 10,772
  • Chile 301,019
    Chile
    Confirmed: 301,019
    Active: 26,340
    Recovered: 268,245
    Death: 6,434
  • Spain 299,210
    Spain
    Confirmed: 299,210
    Active: 270,818
    Recovered: ?
    Death: 28,392
  • UK 286,349
    UK
    Confirmed: 286,349
    Active: 241,958
    Recovered: ?
    Death: 44,391
  • Mexico 261,750
    Mexico
    Confirmed: 261,750
    Active: 70,974
    Recovered: 159,657
    Death: 31,119
  • Iran 245,688
    Iran
    Confirmed: 245,688
    Active: 26,757
    Recovered: 207,000
    Death: 11,931
  • Italy 241,956
    Italy
    Confirmed: 241,956
    Active: 14,242
    Recovered: 192,815
    Death: 34,899
  • Pakistan 234,509
    Pakistan
    Confirmed: 234,509
    Active: 94,713
    Recovered: 134,957
    Death: 4,839
  • Saudi Arabia 217,108
    Saudi Arabia
    Confirmed: 217,108
    Active: 60,252
    Recovered: 154,839
    Death: 2,017
  • Turkey 207,897
    Turkey
    Confirmed: 207,897
    Active: 17,345
    Recovered: 185,292
    Death: 5,260
  • South Africa 205,721
    South Africa
    Confirmed: 205,721
    Active: 104,563
    Recovered: 97,848
    Death: 3,310
  • Germany 198,310
    Germany
    Confirmed: 198,310
    Active: 6,513
    Recovered: 182,700
    Death: 9,097
  • France 168,810
    France
    Confirmed: 168,810
    Active: 61,222
    Recovered: 77,655
    Death: 29,933
  • Bangladesh 168,645
    Bangladesh
    Confirmed: 168,645
    Active: 88,392
    Recovered: 78,102
    Death: 2,151
  • Canada 106,106
    Canada
    Confirmed: 106,106
    Active: 27,571
    Recovered: 69,827
    Death: 8,708
  • China 83,565
    China
    Confirmed: 83,565
    Active: 403
    Recovered: 78,528
    Death: 4,634
  • Netherlands 50,694
    Netherlands
    Confirmed: 50,694
    Active: 44,562
    Recovered: ?
    Death: 6,132
  • S. Korea 13,181
    S. Korea
    Confirmed: 13,181
    Active: 982
    Recovered: 11,914
    Death: 285
  • Australia 8,755
    Australia
    Confirmed: 8,755
    Active: 1,194
    Recovered: 7,455
    Death: 106
  • New Zealand 1,536
    New Zealand
    Confirmed: 1,536
    Active: 22
    Recovered: 1,492
    Death: 22

European economies on course for unprecedented recessions

Author at TechGenyz Business
European Union
European parliament and flags | Representative Image/Depositphotos

Europe's economies are heading for unprecedented recessions as a result of the lockdown measures put in place by governments to get a grip on the coronavirus pandemic, closely watched surveys indicated on Thursday.

The scale of the decline in business activity recorded in monthly surveys was staggering, worse even than the most pessimistic forecasts, and is likely to lend urgency to discussions of European Union leaders about a rescue support package.

The harsh lockdown measures to slow the spread of COVID-19 have crippled economic activity across the continent, said Florian Hense, a European economist at Berenberg Bank.

EU leaders will hold a virtual summit on Thursday at which they are expected to endorse a financial aid package worth 540 billion euros (USD 587 billion) that would help support wages, keep companies afloat and fund health care systems. EU institutions and nations have already mobilized around 3.3 trillion euros (USD 3.6 trillion).

If Thursday's surveys are anything to go by, Europe is going to need all of that.

Financial information firm IHS Markit said its purchasing managers' index for the eurozone a measure of economic activity plummeted to an all-time low of 13.5 points in April from the previous record low of 29.7 in March. The firm has been compiling data for more than 20 years.

Anything below 50 indicates a contraction in activity, with a lower number indicating a sharper drop. So the scale of the April decline suggests that the eurozone is heading for an unprecedented slump. At its lowest during the global financial crisis in 2009, the index only fell to 36.2.

With large swathes of the economy likely to remain locked down to contain the spread of COVID-19 in the coming weeks, the second quarter looks set to record the fiercest downturn the region has seen in recent history," said Chris Williamson, a chief business economist at IHS Markit.

Williamson said that at the current rate, the eurozone is shrinking by a quarter-on-quarter rate of 7.5 per cent.

The services sector has borne the brunt of the lockdown measures, which have included widespread temporary business closures and and draconian restrictions on movement.

From restaurants to travel and tourism, the business has fallen off a cliff as companies have had to enforce shutdowns or severely curtail their activities. Manufacturing is barely faring better, with the lockdown causing a collapse in global demand and huge disruptions in the supply chain.

As a result, unemployment is expected to rise sharply over the coming months. Some economists expect the eurozone unemployment rate to double from the current rate of 7.3 percent even after accounting for the millions of people who remain on the payroll but are out of work and losing income.

Unemployment is also set to ratchet up higher in Britain, which has now left the EU. The equivalent purchasing managers' survey for the UK showed the main index slumping to an all-time low of 12.9 points.

Analysts at Capital Economics say the UK economy is headed for its biggest quarterly economic contraction in more than a century.

We Are Hiring

Subscribe