While some countries are bracing for the second wave of the coronavirus, Europe is conquering the economic peaks. Germany, the largest national economy in the euro area, has breathed new life into the bloc’s economy, pushing it higher.
According to the latest report from IHS Markit, manufacturing in the eurozone is picking up at a record pace, reaching its highest level in more than two years in September. The Purchasing Managers Index (PMI) soared to 53.7 points, after rising to 51.7 points in August. Analysts point out that such robust growth has occurred after a noticeable improvement in Germany's economy. Economists say that the figures would have been even more modest without the help of Germany, which accounted for about half of the euro zone's manufacturing growth in September. Berlin was able to tackle the coronavirus crisis successfully finding a way to boost the local economy and mitigate the economic difficulties. The Manufacturing PMI in Germany surged to 56.4 points. The indicator was slightly lower than the forecast of 56.6 points. Nevertheless, it advanced significantly compared to the reading of 52.2 points notched in August. Notably, the PMI above 50 points indicates an increase in business activity.
What is more, the German economy was one of the first to recover after the first wave of the coronavirus. Germany came up with an effective plan on how to support the economy and avoid a crisis. Experts have already revised their forecasts. Instead of projecting a cut in production by 6.3% by the end of 2020, they expect a decrease of 5.8%. The Federal Ministry for Economic Affairs and Energy envisages a V-shaped economic recovery.
