Europe’s Growth Slows as Ukraine War threatens Recovery
Business activity in Europe has slowed in March, according to a survey, as high prices and gloomy outlook raised fears that Ukraine was could impact the economic recovery of Europe.
Data on Thursday showed that Europe is growing at a steady pace after the coronavirus pandemic slump, while the economic health is not showing signs of improvement.
Chris Williamson, the S&P’s chief business economist has said that the survey underscores the immediate and material impact of the war on the economy and highlights the risk of Europe falling into decline in the second quarter. He further said, “Had it been for the easing of coronavirus measures business activity would have weakened far more sharply in March.”
A statement said that the purchase managers’ index from S&P slipped 1.0 points to 54.5, showing growth as a figure above 50 indicates growth. Among European countries, France best resisted the negative effects of the war, as its service industry boomed and consumer demand offset slumping exports.
In Germany, Europe's largest economy, growth slowed further, but manufacturing was still above the levels seen at the end of last year when the country's key export sector was hit hard by the pandemic.
Analysts and officials have given a warning about the effects of Russia’s invasion of Ukraine have made economic forecasting highly uncertain but many agree that predictions of major growth will have to be significantly lower.