Customers queue to enter a Galeria Karstadt Kaufhof GmbH department store as shopping without proof of a negative Covid-19 test result begins in Berlin, Germany. Chancellor Angela Merkel is ready to allow Germany’s controversial lockdown law to lapse, the latest sign that the pandemic is releasing its grip on Europe’s largest economy. Bloomberg
Customers queue to enter a Galeria Karstadt Kaufhof GmbH department store as shopping without proof of a negative Covid-19 test result begins in Berlin, Germany. Chancellor Angela Merkel is ready to allow Germany’s controversial lockdown law to lapse, the latest sign that the pandemic is releasing its grip on Europe’s largest economy. Bloomberg
Customers queue to enter a Galeria Karstadt Kaufhof GmbH department store as shopping without proof of a negative Covid-19 test result begins in Berlin, Germany. Chancellor Angela Merkel is ready to allow Germany’s controversial lockdown law to lapse, the latest sign that the pandemic is releasing its grip on Europe’s largest economy. Bloomberg
Customers queue to enter a Galeria Karstadt Kaufhof GmbH department store as shopping without proof of a negative Covid-19 test result begins in Berlin, Germany. Chancellor Angela Merkel is ready to a

Eurozone economy contracted less than expected in 2021 first quarter


Alice Haine
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The eurozone economy shrank less than expected in the first quarter, indicating a resilience in the region despite tighter lockdowns at the start of the year.

Gross domestic product in the 19 countries sharing the euro contracted 0.3 per cent in the first quarter of this year compared to the previous three-month period, with a 1.3 per cent annual decline, revised data from Eurostat showed. This compares with the respective declines of 0.6 per cent and 1.8 per cent estimated three weeks ago.

“The eurozone GDP data for Q1 was revised up and confirmed the resilience of economic activity during the reimposed wave of lockdowns across the bloc,” Maddalena Martini, economist at Oxford Economics said.

The 0.3 per cent contraction came after a 0.6 per cent quarterly fall in GDP, meaning the eurozone economy was in its second recession since the outbreak of Covid-19.

Eurostat said employment fell 0.3 per cent quarter-on-quarter in January-March and was down 1.8 per cent compared to the same quarter a year ago.

Meanwhile, economic sentiment experienced a setback in June, a report by research institute Zew said, declining to 81.3, from the record-high in May at 84, but it remained at elevated levels as investors remained optimistic about the vaccine campaigns across the bloc that are allowing economies to reopen gradually.

While the Zew index measures expectations in Germany and the wider eurozone, the institute’s president Achim Wambach said the results were not an indication of a fading recovery.

“The economic recovery is progressing,” Mr Wambach said. “The decline in expectations is probably largely due to the considerably better assessment of the economic situation, which is now back at pre-crisis levels. The financial market experts therefore continue to expect a strong economic recovery for the next six months.”

The Zew index found that growth in Germany, the region’s largest economy, rose in June to its highest level in nearly two years, while unexpected growth in Italy in the first quarter helped to boost output across the economic bloc.

A strong economic recovery is expected to take hold in the eurozone in the second half of the year, fuelled by household savings and pent-up demand for goods and services.

But manufacturing, a stronghold during the latest round of restrictions, is facing supply-chain disruption that could dampen the rebound.

Looking ahead, activity and sentiment trends are expected to remain on a solid footing, Ms Martini said, as economies reopen, supported by encouraging news on coronavirus containment and vaccination campaigns.

“We now see a solid GDP increase in Q2”, which she said would lay the foundation for strong growth in the second half.

The European Central Bank is meeting this week to determine its monetary stimulus, with economists expecting it to push ahead with an elevated level of pandemic bond-buying over the summer.

Citizenship-by-investment programmes

United Kingdom

The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).

All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.

The Caribbean

Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport. 

Portugal

The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.

“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.

Greece

The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.

Spain

The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.

Cyprus

Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.

Malta

The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.

The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.

Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.

Egypt 

A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.

Source: Citizenship Invest and Aqua Properties

Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.