According to a report by the Wall Street Journal, Europe’s economy is still at a decline after months of struggling with the coronavirus.
Europe is currently facing the second-wave of the coronavirus, as the number of cases is on the rise. Due to this, Europe’s economy has not shown any signs of recovery.
In comparison, the situation in the US is much better. The economy has started to show signs of recovery and is slowly picking up the pace.
The purchasing managers’ index for the US rose to 55.5 as per the IHS Markit. A number higher than 50 shows signs of recovery and growth.
In comparison, the purchasing managers’ index for the European Zone fell under 50, indicating the damage that coronavirus is still causing to the region’s economy.
Chris Williamson, a chief business economist at the IHS Markit also appreciated the US’ road to recovery.
Experts believe that since businesses have resumed their normal activities in the US, therefore increasing the number of cases is not causing much damage.
The US administration has eased up its stance on lockdown as there’s no timeline is available when the vaccine will be developed. On the other hand, Europe did ease its restrictions previously, but given the increase in the number of cases, it has implemented new restrictions again.
According to the information shared by the World Bank, if the economy continues to fall due to the pandemic, around 150 million people will become extremely poor.
The global economy is in deep trouble due to the virus and it’s affecting people everywhere. Millions of people have already been laid off from their jobs.
Many have lost their lives and finances. The only way to move forward is to accept the situation and come up with a unified response.