Moody's: Restrictions in Europe Will Slow Economic Recovery

Moody's: Restrictions in Europe Will Slow Economic Recovery International credit rating agency Moody's stated, “Restrictions in Europe will slow the economic recovery” Moody's, the international credit rating agency, published the "Covid-19 Recovery Monitor" report for Europe on November. In the published report, it was noted that re-imposing restrictions in the second wave of the new type of coronavirus (Covid-19) epidemic will cause interruption in economic activities. It has been claimed that due to these cuts, the pace of economic recovery will slow in Europe's five largest economies, Germany, France, Italy, England and Spain. In Moody's report, in an environment where concerns about the spread of the epidemic increased and consumer confidence declined, the latest restrictions seem to lead to a moderate drop in demand; In addition, it was noted that any reversal in economic activities would be limited. In the report, which stated that the possibility of consumers to accumulate excess cash was low in the second wave of the coronavirus epidemic, it was pointed out that despite the extension of policy support against the crisis, renewed restrictions will have a negative impact on wage earners. “It is unlikely that positive vaccination news will significantly reduce the levels of anxiety of households until the vaccine is introduced.” The report included the following statements: “Differences continue between countries. Fewer restrictions will limit the disruption in economic activity everywhere compared to the previous restrictions.”       This article has AA contribution.