Economic Impact On The Eurozone
Coronavirus has affected people and businesses across the world. It has resulted in a weakening of the major economy. The pandemic has made the world to stop production and other economic activity. Imposing lockdown to stop the spread of the virus has put a halt to most of the economy in the Eurozone. European countries like Italy, France, Spain and Germany are the worst hit in the pandemic. These countries are also the major economic powers in the world. This has resulted in a steepest decline in the Eurozone economy and in turn affects the international economy.
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Fall Of the Eurozone
The stock market crashed to 67.0 points since its inception in 1985. Economists expect it to go further to 74.7 points. The biggest drop was in the hospitality and service sector that generates two third of GDP in the Eurozone. The market share fell to -35.0 points whereas in the retail sector, the points tumbled to -28.3. This has been the case with most of the industrial sectors. Travel restrictions imposed by lockdown have made people stay indoors bringing down the travel sector. Crude oil prices have tumbled to the lowest.
Confidence in the general public has dropped to the lowest point. Lockdown is known to this generation and people are uncertain how things are going to be in future. Unemployment has increased and a huge number of people have filed for unemployment benefits. The unemployment index has increased to 63.0 points among consumers in April. It is inching towards 70.7 which was a record high during the last depression in 2009 in the Eurozone. It all depends on when coronavirus can be contained. If the world could contain it sooner within 2020, we could resurrect the economy mid 2021 and after.
Rise in Expense
International economy is affected by global economic power and the emerging markets. It is not easy to contain the spurt in the economy of one region within itself. It will have a spilling effect world over especially if it is a global power. The Eurozone is considered a major economy in the world. Jump in prices in the region will resonate world over. The indicators for price have surged to 29.1. The indicator for selling price in the Eurozone fell to -8.4. It is going to be a difficult time world over and for the international economy. With most of the countries reeling under the pandemic, the Eurozone economy suffers the most.