The index of business activity in industry and services (PMI) of 19 countries of the Eurozone in may rose to 30.5 points from the level of April in 13, 6 points to the weakening of quarantine measures. According to experts, Europe “started from the bottom” after a deep slump in April. This writes Reuters, citing data research organization Markit Economics.
Analysts surveyed by the Agency had forecast growth rate by up to 25 points. As said IHS chief economist at Markit Chris Williamson, the Eurozone in may there was a further downturn, but the figures are encouraging because “the recession probably reached a bottom in April.” PMI Eurozone services PMI in may was 28.7 points against 12 points in April. The manufacturing PMI rose from 33.4 to 39.5 points.
According to experts, GDP in the second quarter will fall at an unprecedented rate, falling by about 10 percent compared with the first quarter, but the PMI growth indicates that the recession will be moderate.
Experts from J. P. Morgan predicted a GDP contraction in the Eurozone by 45 percent by the end of the second quarter. The European Commission has developed a plan to help the EU emerge from the economic crisis. In the framework of the project plan to allocate about two trillion euros for the years 2021-2027.
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