Impact of COVID-19 on the European Economy, Deviation & Trends Analysis Report, Segmentation (Automobile, Food & Beverage, Machinery, Electrical and Electronics, Aviation, BFSI, Retail and E-Commerce, Healthcare, Travel and Tourism, and Others) and Forecast 2019-2025
Europe is among the largest economies across the globe in terms of industrial production. The GDP of the European Union (EU) was estimated to be $18.8 trillion in 2018, increased from $17.4 trillion in 2017, represented nearly 23% of global GDP.
This result owing to the remarkable focus towards the production of all finished goods and services within the country. In 2018, EU industrial production surpassed the level that was observed in 2008.
More than 75% of the value of sold production in EU 28 was generated by six member states, including Germany, Italy, France, UK, Spain, and Poland with 28%, 16%, 12%, 9%, 8%, and 5%, of total EU respectively (Eurostat).
Key companies getting affected by coronavirus epidemic in the region include Ferrari S.p.A., Siemens AG, BASF SE, British Airways plc, Siare Engineering International Group s.r.l., and Rolls-Royce Holdings plc.
The region has a significant production of food products, motor vehicles, machinery and equipment, and basic metals and fabricated metal products. In 2018, the production of food products in EU 28 increased by nearly 117 billion (16%) compared with 2008.
In addition, there is a considerable production of machinery and equipment, such as construction and transportation equipment in European countries, including UK and Germany. According to the Office for National Statistics (ONS), in UK, the production of machinery and equipment increased by 1.8% and reached nearly $36 billion in 2018.
However, European countries are currently facing a recession due to factory shutdown and shortage of raw material amid the COVID-19 outbreak. After China, European countries, including Italy, Spain, and UK are highly affected by COVID-19 pandemic.
Due to the epidemics of COVID-19, the manufacturers of the automobile, chemical, electronics, and aircraft are facing concerns regarding supply chain disruption. The government orders to suspend production is further affecting industrial output in the region.
Several automobile companies, retailers, and machinery and equipment manufacturers have temporarily shut down their factories to minimize the spread of coronavirus. For instance, in Italy, Ferrari S.p.A.
has suspended production for two weeks due to Italian government orders for nationwide lockdown due to the COVID-19 epidemic. It is expected that Ferrari and Fiat began producing.
Further, Jaguar Land Rover Automotive PLC, a part of Tata Motors, suspended its UK production facility in line with the government advise to reduce the spread of coronavirus.
Verticals Affected Most
- Food & Beverage
- Electrical and Electronics
- Retail and E-Commerce
- Travel and Tourism
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