The latest figures show the economies of several eurozone countries, including France, Germany and Italy, are likely to shrink this year as a result of the outbreak. Meanwhile, personal consumption spending, which accounts for about 70 per cent of the us economy, fell by the largest amount on record in April, and the rise in the unemployment rate has left the recovery highly uncertain. Against this background, many countries around the world have lifted blockade measures in stages and continued to expand the scope of resumption of work and production.

Eurozone economic data continue to be dismal

Recently, the eurozone released a series of economic data, although some indicators with the implementation of the "unblocked" measures have recovered, but overall, a number of eurozone economies are still in a state of contraction.

The French economy shrank less than initially thought in the first quarter, official data showed, but remained deep in recession. France's gross domestic product (GDP) fell by 5.3% in the first quarter from the previous quarter due to the outbreak, according to data released by the national institute for statistics and economic research on May 29. France's gross domestic product is expected to worsen further in the second quarter, possibly contracting by 20 per cent from the previous quarter, the institute said.

The ifo institute for economic research (ifo), a leading think tank in Germany, forecast that the German economy will contract by 6.6% this year and grow by 10.2% in 2021 from this "low level", despite a month-on-month rebound in four business indicators, including manufacturing, services, trade and construction, in May. In the second quarter of this year, the report forecast a "significant decline" in the German economy of 12.4 per cent. The ifo had also forecast a quarter-on-quarter decline of more than 10 per cent.

Data from Italy's central statistics agency showed business confidence in May had fallen to its lowest level since the measure was published in March 2005. The federation of Italian small and medium enterprises called the figures "alarming" and said "the health and economic emergency is hitting all sectors, particularly shops, services and tourism".

In Italy, one of the worst-affected countries in Europe, a two-month lockdown has brought much economic activity to a near standstill. Italy's central statistics agency said the economy shrank 5.4% in the first quarter from a year earlier and 5.3% from the previous quarter, the worst quarterly figure since 1995. Inazio visco, governor of the bank of Italy, recently predicted that Italy's GDP could fall between 9% and 13% this year.

The euro zone's inflation rate fell for the fourth straight month to 0.1 percent in May, the lowest since June 2016, according to preliminary data released by eurostat on May 29. Plunging energy prices are the main cause of low inflation in the eurozone. Energy prices in the eurozone fell 12 per cent in May from a year earlier, the data showed. "If the situation worsens and further stimulus is needed, the ECB is prepared to expand its policy tools to achieve price stability," European central bank executive board member Isabel schnabel said in a recent media interview.

Us consumer spending recorded its biggest drop on record

According to data released by the us department of commerce on May 29, personal consumption in the us fell 13.6% month-on-month in April, the biggest drop since comparable data began in 1959, as lockdown measures to contain the epidemic began in many parts of the country in mid-march. The personal saving rate hit an all-time high of 33 per cent that month, up from 12.7 per cent in March.

Earlier revisions showed us GDP fell at an annualised rate of 5 per cent in the first quarter, down 0.2 percentage points from the initial figure.

The decline in consumer spending is one sign that the us economy is contracting, CNN reported. Gregory daco, chief U.S. economist at Oxford economics, said the high level of uncertainty and lingering fears about the outbreak have dampened americans' desire to go out and spend. At the same time, limited income limits people's ability to spend. He expects U.S. personal consumption spending to contract by about 15% in the second quarter.

Meanwhile, according to the latest data from the labor department, 41 million americans have applied for unemployment benefits since the outbreak shut down businesses in mid-march. The U.S. unemployment rate hit 14.7 percent in April, the highest level since the great depression, and many expect it to climb to nearly 20 percent in May and stay in double digits until the end of 2021.

In an unprecedented move, White House officials confirmed that they will not update their economic forecasts during this summer's mid-term review, the Wall Street journal reported. Government officials say the economic turmoil and uncertainty caused by the outbreak make it impossible to update the data accurately.

In effect, the decision was meant to keep it from revealing "exactly how the recession has hurt growth and how long the pain of high unemployment will last," the analysis said. Since 1973, the U.S. government has typically released budget proposals in February, followed by updated forecasts for growth, employment and inflation in the summer.

Many countries continue to expand the scope of "unsealing"

At present, many countries around the world have lifted blockade measures in stages and continued to expand the scope of resumption of work and production. New York City is expected to enter the first phase of "unblocking" on June 8, New York governor Andrew cuomo announced on May 29, and another five regions in New York state will enter the second phase of resuming work. But Mr Cuomo also warned that "reopening does not mean we will return to pre-epidemic conditions" and that containment measures would be reimposed if "unblocking" triggered a rebound.

Federal reserve chairman colin Powell said on May 29 that the central bank will soon launch a "public business lending program" to support small and medium-sized businesses affected by the outbreak. The program is aimed at small and medium-sized businesses with fewer than 15,000 employees or $5 billion in annual revenue, with loans of between $500,000 and $100 million.

Schools will reopen in some parts of the country from June 1, "non-essential" retail stores will reopen and people will be able to gather outdoors in small areas, prime minister Boris Johnson said. The UK government is drawing up a massive plan to create jobs in a bid to tackle a potential wave of job losses and get the economy back on its feet as quickly as possible, the financial times reported.

The job-creation plan is expected to focus on "infrastructure upgrades," including broadband and green energy projects, the report said. It was also revealed that "carbon capture and storage and offshore wind projects" could receive government support. At the same time, education authorities are working on a new skills training program that will retrain workers for jobs.

In addition, French prime minister philippe announced that after successfully slowing the spread of the epidemic, France will relax domestic travel restrictions from this week, opening national parks and green Spaces, and allowing primary and secondary schools to resume classes and cafes and restaurants to reopen. This marks the second phase of France's "unblocking", which began on May 11th with the easing of a strict two-month nationwide blockade.