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Europe's economy shrinks in Q1 as US rolls ahead

The fall in output was smaller than the 1 per cent contraction expected by economists but still far short of the rebound underway in the United States and China, two other pillars of the global economy.

April 30, 2021 / 03:36 PM IST
Economy

Economy

Europe's economy shrank 0.6 per cent in the first three months of the year as slow vaccine rollouts and extended lockdowns delayed a hoped-for recovery and underlined how the region is lagging other major economies in rebounding from the coronavirus pandemic.

The fall in output was smaller than the 1 per cent contraction expected by economists but still far short of the rebound underway in the United States and China, two other pillars of the global economy.

U.S. growth figures announced Thursday showed the U.S. grew 1.6 per cent during the first quarter, with business supported by strong consumer demand. On an annualized basis, the U.S. grew 6.4 per cent.

The second straight quarter of falling output in Europe, following contraction in the fourth quarter of 2021, confirms Europe''s double-dip pandemic recession after a rebound in growth in the third quarter. Two quarters of falling output is one definition of a recession.