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Bloomberg
The euro-area economy grew modestly in the fourth quarter amid another wave of surging coronavirus infections and curbs on activity.
Gross domestic product (GDP) rises 0.3%, slightly less than predicted, after a sharp contraction in output left Germany on the brink of recession. Meanwhile, a ramp-up in investment contributed to stronger-than-expected growth in France and Spain. Italy reported an
expansion of 0.6% on Monday.
The region’s economy is tackling headwinds better than earlier in pandemic as businesses find ways to cope with restrictions and more people get vaccinated, but it’s still lagging recoveries in the US and the UK.
Price surges are a major concern for the euro-area economy, according to a Bloomberg survey. Last week, the International Monetary Fund has also warned inflation in the region will
persist for longer and cut its growth projection for the year ahead.
In one sign that the outlook may improve, purchasing managers’ indexes for January showed that supply-chain snarls are starting to ease. The pace of improvement will largely depend on the health situation in other parts of the world as strict Covid-19 controls in China and much of the rest of Asia could yet derail progress.