The eurozone economy expanded rapidly, and mainly this was due to the loosening of social restrictions and widespread vaccinations that powered the region’s comeback from the pandemic. However, the supply-chain issues and the increase in prices are expected to hold growth back. Eurozone consists of 19 nations, and the Gross Domestic Product for the 19-nations grew at a seasonally adjusted rate of 9.1% in the three months. This is significantly faster than the 2% growth rate by the United States and around 1% for China over the same period. Analysts predict that the U.S. economy is expected to grow in the coming months, and they also predict that the growth for the eurozone will decline. The eurozone economy grew by 2.2% in the third quarter. The large manufacturing economies of the eurozone such as Germany and Italy are more dependent on international trade than is the U.S., where the service sector makes up a large portion of the economy. Due to supply chain issues, the manufacturers struggle to secure supplies and raw materials. The initial boost from consumption as Europeans returned to restaurants and began traveling again, the effect is wearing off and now some governments have started to reintroduce social restrictions as the cooler weather leads to a rise in COVID-19 cases. France and Italy were the top performers of the eurozone economies, followed by Germany and Spain. The growth in France was mainly due to the easing of covid restrictions, leaving economic output just 0.1% short of its pre-pandemic level. Whereas in Spain, the growth was held back by a decline in consumption and economic output remains around 6% below its pre-pandemic level.
https://www.wsj.com/articles/eurozone-economy-outpaces-u-s-china-but-tougher-times-lie-ahead-11635505779
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