Slow virus efforts ding Europe economy

First-quarter results shrink 0.6% as restrictions, lockdowns delay recovery hopes

FILE - In this Feb. 2, 2021 file photo, a few people walking at the main shopping street are seen through a closed gate of an abandoned shopping center during the lockdown in Essen, Germany. The European Union statistics agency Eurostat announces first-quarter growth figures for the 19 countries that use the euro. (AP Photo/Martin Meissner, File)
FILE - In this Feb. 2, 2021 file photo, a few people walking at the main shopping street are seen through a closed gate of an abandoned shopping center during the lockdown in Essen, Germany. The European Union statistics agency Eurostat announces first-quarter growth figures for the 19 countries that use the euro. (AP Photo/Martin Meissner, File)

FRANKFURT, Germany -- Europe's economy shrank 0.6% in the first three months of 2021 as slow vaccine rollouts and extended lockdowns delayed a hoped-for recovery, underlining how the region is lagging other major economies in rebounding from the coronavirus pandemic.

The fall in output for the 19 countries that use the euro currency was smaller than the 1% 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.

Figures announced Thursday showed the American economy grew 1.6% during the first quarter, with business supported by strong consumer demand. On an annualized basis, the U.S. grew 6.4%.

In Europe, it was the second-straight quarter of falling output, meaning the region fell back into a recession despite a rebound in growth from 2020's third quarter . The latest data covers the quarter that ended March 31 and economists say the economy is on the verge of an upswing.

France showed unexpected growth of 0.4% compared with the quarter before, while the main negative surprise came in Germany, the continent's largest economy. Activity there shrank by a larger-than-expected 1.7% as manufacturing was hit by disruption of parts supplies on top of the hit to service and travel industries from pandemic-related restrictions.

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Authorities are anticipating the covid-19 outlook in France to be better next month, when a greater proportion of the population will be vaccinated. The government is slowly starting to lift partial lockdowns, despite consistently high numbers of coronavirus cases and hospitalized covid-19 patients.

Worry about a potential second-straight lost vacation season has clouded the outlook for Italy, Spain and Greece, which rely heavily on tourism.

Greece has lifted quarantine restrictions on visitors from EU countries and will allow restaurants and cafes to reopen for outdoor service from May 3. Travel receipts there sank 75% last year.

Information for this article was contributed by Srdjan Nedeljkovic and Lefteris Pitarakis of The Associated Press.

FILE - In this April 30, 2020 file photo, an employee wearing a face mask to protect against the spread of the new coronavirus attaches a Mercedes emblem as he works on a Mercedes-Benz S-class car at the Mercedes plant in Sindelfingen, Germany. The European Union statistics agency Eurostat announces first-quarter growth figures for the 19 countries that use the euro. (AP Photo/Matthias Schrader, File)
FILE - In this April 30, 2020 file photo, an employee wearing a face mask to protect against the spread of the new coronavirus attaches a Mercedes emblem as he works on a Mercedes-Benz S-class car at the Mercedes plant in Sindelfingen, Germany. The European Union statistics agency Eurostat announces first-quarter growth figures for the 19 countries that use the euro. (AP Photo/Matthias Schrader, File)
FILE - In this Monday, March 29, 2021 file photo, lights burn in some offices of the buildings of the banking district in Frankfurt, Germany. The European Union statistics agency Eurostat announces first-quarter growth figures for the 19 countries that use the euro. (AP Photo/Michael Probst, file)
FILE - In this Monday, March 29, 2021 file photo, lights burn in some offices of the buildings of the banking district in Frankfurt, Germany. The European Union statistics agency Eurostat announces first-quarter growth figures for the 19 countries that use the euro. (AP Photo/Michael Probst, file)
FILE - In this March 17, 2021 file photo, a refinery of BP is steaming at night in Gelsenkirchen, Germany. The European Union statistics agency Eurostat announces first-quarter growth figures for the 19 countries that use the euro. (AP Photo/Martin Meissner, File)
FILE - In this March 17, 2021 file photo, a refinery of BP is steaming at night in Gelsenkirchen, Germany. The European Union statistics agency Eurostat announces first-quarter growth figures for the 19 countries that use the euro. (AP Photo/Martin Meissner, File)
FILE - In this March 18, 2021 file photo, empty tables are seen on a deserted square in normally very busy old town of Cologne, Germany, Thursday. The European Union statistics agency Eurostat announces first-quarter growth figures for the 19 countries that use the euro. (AP Photo/Martin Meissner)
FILE - In this March 18, 2021 file photo, empty tables are seen on a deserted square in normally very busy old town of Cologne, Germany, Thursday. The European Union statistics agency Eurostat announces first-quarter growth figures for the 19 countries that use the euro. (AP Photo/Martin Meissner)

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