Europe's economy bounces back from a double-dip recession
Mar 15, 2022
Italy, which saw 128,000 pandemic deaths and a deep recession, was a major positive surprise, growing 2.7% as consumer spending revived.
Portugal boomed with 4.9%.
Meanwhile, growth returned in major economies France, which grew 0.9% compared to the previous quarter, and Germany, which saw growth of 1.5% after a sharp drop of 2.1% in the first quarter.
German car companies, in particular, have shown strong profits despite a shortage of semiconductor components as global auto markets recover, particularly for the higher-priced vehicles sold by Mercedes-Benz and by Volkswagen's Audi and Porsche luxury brands.
The stronger performance in southern Europe may be the result of stronger spending by households as restrictions are eased, said Andrew Kenningham, chief Europe economist at Capital Economics. Spain, with growth of 2.8% and consumer spending up 6.6%, both illustrated the rebound and underlined how far it has to go. Gross domestic product remains 6.8% below where it was before the pandemic.
Lagging vaccinations held back the European economy in the first part of the year but have made steady progress since. Yet the spread of the more contagious delta variant has led to predictions that it may slow, though not derail, the economic upturn. Travel and tourism, key for places like Spain and Greece, are recovering but remain subdued.
“Given its reliance on tourism, the Spanish economy looks especially vulnerable to the delta variant that is forcing several regions in the country to impose new restrictions, while foreign governments are discouraging trips to the Iberian Peninsula,” said Edoardo Campanella, an economist at UniCredit Bank in Milan.
Officials figures Friday also showed eurozone unemployment at 7.7% in June, down from 8.0% in May. Inflation rose to 2.2% in July from 1.9% in June.
LATEST
Jul 01, 2025
Azerbaijan inks loan agreement with World Bank to expand renewable energy projects
News
The government of Azerbaijan and the World Bank have signed a loan agreement on “the project to expand the use of renewable energy sources in Azerbaijan”.
Jun 30, 2025
Azerbaijani ‘Cybersecurity’ course now available from EU4Digital Academy
News
Citizens and small and medium-sized enterprises (SMEs) in Azerbaijan are invited to learn how to secure their personal or professional digital life with the EU4Digital Academy ‘Cybersecurity‘ course.
Jun 27, 2025
EBRD launches program to improve efficiency of water sector in Azerbaijan
News
The European Bank for Reconstruction and Development (EBRD) has announced the launch of the Financial and Operational Performance Improvement Program (FOPIP) for the State Agency for Water Resources of Azerbaijan and its subordinate entities.
Jun 19, 2025
EuroVillage 2025 in Baku
News
EuroVillage 2025, a vibrant open-air festival hosted by the European Union is taking place on 22 June at Baku boulevard.
Jun 13, 2025
The third meeting of Azerbaijan-EU Energy Dialogue was held in Brussels
News
The third meeting of High-Level Energy Dialogue established to develop a strategic energy partnership between Azerbaijan and the European Union (EU) was held in Brussels, the Kingdom of Belgium, informs via Ministry of Energy.
May 30, 2025
EBRD and Unibank to support trade finance in Azerbaijan
News
The European Bank for Reconstruction and Development (EBRD) has approved a trade finance line of up to €4.4 million for Azerbaijani lender Unibank under its Trade Facilitation Programme (TFP).
May 19, 2025
EU delegation to Azerbaijan organizes Europe Day in Baku
News
Baku hosted an official reception Thursday organized by the European Union (EU) delegation to Azerbaijan, marking the Europe Day.
May 13, 2025
Azerbaijan and EU mull deepening cooperation in several areas
News
Azerbaijan and the European Union discussed deepening cooperation in several areas, Azerbaijani Economy Minister Mikayil Jabbarov said on X.
May 12, 2025
Discussions were held on the supply of "green energy" and hydrogen from Azerbaijan to Europe
News
A meeting was held between the Minister of Energy, Parviz Shahbazov, and the Director-General for Eastern Neighborhood and Enlargement Negotiations (DG ENEST) of the European Commission, Gert Jan Koopman.
Apr 26, 2025
Ilham Aliyev received EU High Representative and Vice-President of European Commission Kaja Kallas
News
On April 25, President of the Republic of Azerbaijan Ilham Aliyev received Kaja Kallas, High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the European Commission.
Apr 18, 2025
The Eastern Partnership Business Forum was held in Warsaw
News
The Eastern Partnership Business Forum was held on April 15–16, 2025, at PGE Narodowy Stadium in Warsaw, bringing together high-level representatives from European Union member states and Eastern Partnership countries to explore current trends in economic cooperation, shared regional priorities, and prospects for future collaboration.
Apr 05, 2025
Baku hosted 11th Southern Gas Corridor Advisory Council Ministerial Meeting and 3rd Green Energy Advisory Council Ministerial Meeting
News
On April 4, the 11th Southern Gas Corridor Advisory Council Ministerial Meeting and the 3rd Green Energy Advisory Council Ministerial Meeting were held at the Gulustan Palace in Baku.
