Moody’s: Europe’s coronavirus lockdowns cut consumption by a third
The coronavirus lockdown has stopped or postponed around a third of typical average household consumption within the European Union (Aaa stable), creating a contingent consumption deficit that will weaken EU countries’ GDP performance, Moody’s Investors Service said in a report today.
Overall, a drop of a third in EU household consumption would represent around 20% of GDP, on an annualised basis, if lockdowns were to last for 12 months. A shorter lockdown would only impact a proportional fraction of this amount.
“Across the five largest European countries, Spain, Italy and the UK have the highest share of consumption that is likely to be lost or postponed because of the coronavirus lockdown,” said Ruosha Li, a Moody’s Analyst and the report’s co-author.
The longer-term impact of the lockdown and the speed of recovery in consumption will depend on the timing and conditions of the exit, and on the related evolution of consumer sentiment.
The fall in foreign demand for European tourism and reduced construction activity will add to the impact of the fall in consumption. Spain is the most exposed of the five largest European economies to the decline in international tourism.
Related news
A turnaround in the economy can already be observed in eight areas
Nagy Márton kiemelte, a magyar gazdaságban rövid távon a legnagyobb…
Read more >Wine market changes: declining consumption, challenges and opportunities
In recent years, there has been a significant transformation in…
Read more >Related news
OKSZ: margin is not profit!
The international food retailer member companies of the National Trade…
Read more >Viktor Orbán on Kossuth Radio: traders cannot add more than 10 percent to the purchase price
Traders cannot add more than 10 percent to the purchase…
Read more >GKI Analysis: Why are food prices constantly rising?
In recent times, the rise in the prices of basic…
Read more >