Europe's economy suffered a massive blow in April when government restrictions to contain the coronavirus left companies scrambling to stay afloat, Bloomberg reports.
Following a Bloomberg article, ''an estimate of private-sector activity in the euro area plunged to just 13.5 from 29.7 in March, IHS Markit said Thursday. The drop was far sharper than economists had anticipated and marked the lowest reading for the Purchasing Managers' Index since it began more than two decades ago.''
European leaders will discuss a possible two trillion-euro ($2.2 trillion) rescue plan for the region on Thursday.
Governments have already pledged billions of euros in aid.
Angela Merkel calls for a Europe-wide economic stimulus program to be financed by the EUâs budget https://t.co/wWFvTQ4PjA
— Bloomberg Economics (@economics) April 23, 2020
The European Central Bank stepped up its efforts to shield the most vulnerable countries on Wednesday.
Reports say that as large parts of the region's economy effectively shut down, a new business in both manufacturing and services fell at a record pace in April.
''The latter bore the brunt, reflecting the hit to the leisure industry, airlines, restaurants and hotels,'' Bloomberg reports.
Figures for Germany and France pointed to unprecedented slumps at the start of the second quarter.
Read the full article here.
Vakho Revazishvili
News Author