The Covid19 pandemic strikes again. The disease is spreading all across the European continent leaving catastrophic consequences towards the national economies. To what extent does the EU have resilience to address the everlasting pandemic? Will its economy survive?
The most affected area of economy is tourism with no doubt. With limited movement of people, the EU Member States suffer from incomes by the tourism. In its endeavours to ease this problem, on 15 June 2020, the European Commission launched Re-open EU, an online platform that contains essential information about the safe relaunch of free movement and tourism across Europe. It provides information on borders available means of transport travel restrictions public health and safety measures, such as physical distancing or wearing of facemasks other practical information for travelers. Re-open EU also brings together up-to-date information from the Commission and Member States. It allows people to browse country-specific information through an interactive map, offering updates on applicable national measures, as well as practical advice for visitors in that country.
As the pandemic re-ignites in October, the Europe registers various attempts to ease the consequences. It will be presented in the coming text, what is the outlook of the macroeconomic capacity during the Covid19 pandemic. In the third quarter 2020, seasonally adjusted GDP increased by 12.7% in the euro area and by 12.1% in the EU, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union.
These were by far the sharpest increases observed since time series started in 1995, and a rebound compared to the second quarter of 2020, when GDP had decreased by 11.8% in the euro area and by 11.4% in the EU. In September 2020, the euro area seasonally-adjusted unemployment rate was 8.3%, stable compared with August 2020 and up from 7.5% in September 2019. The EU unemployment rate was 7.5% in September 2020, stable compared with August 2020 and up from 6.6% in September 2019. These figures are published by Eurostat, the statistical office of the European Union.
Eurostat estimates that 15.990 million men and women in the EU, of whom 13.612 million in the euro area, were unemployed in September 2020. Compared with August 2020, the number of persons unemployed increased by 42 000 in the EU and by 75 000 in the euro area. Compared with September 2019, unemployment rose by 1.811 million in the EU and by 1.376 million in the euro area. In September 2020, 2.995 million young persons (under 25) were unemployed in the EU, of whom 2.451 million were in the euro area.
In September 2020, the youth unemployment rate was 17.1% in the EU and 17.6% in the euro area, down from 17.8% and 18.3% respectively in the previous month. Compared with August 2020, youth unemployment decreased by 97 000 in the EU and by 77 000 in the euro area. This decrease should be interpreted with caution: it might be explained by some young persons not actively seeking employment until the situation improves in the labour market. Compared with September 2019, youth unemployment increased by 259 000 in the EU and by 202 000 in the euro area.
In September 2020, the unemployment rate for women was 7.9% in the EU, stable compared with August 2020. The unemployment rate for men was 7.1% in September 2020, also stable compared with August 2020. In the euro area, the unemployment rate for women increased from 8.8% in August 2020 to 8.9% in September 2020 while it decreased from 7.9% to 7.8% for men.
It is not yet clear and sure how and whether the EU will be successful in managing the ongoing crisis. It is clear that its economy is falling down, and all the macroeconomic indicators are low. The very grey future is more than obvious as the pandemic is not over yet, and its end is not even in the horizon.