Back
Europe is headed for even deeper recession than initially thought
Jul 7, 2020
The effects of the coronavirus pandemic on the European Union’s economy will be even more devastating than initially thought, according to the latest forecast from the European Commission.
In the 19 euro area countries, gross domestic product (GDP) should contract by 8.7 per cent this year, according to the calculations of EU economic experts, significantly deeper than the 7.7-per-cent decline predicted in May.
For the whole 27-country EU, a downturn of 8.3 per cent is expected in 2020.
“The summer forecast shows, first of all, that the road to recovery is still paved with uncertainty,” EU Economy Commissioner Paolo Gentiloni said as he presented the sobering figures in Brussels on Tuesday.
Moreover, the recovery from the slump will be “slightly less robust” than modelled in the last forecast from early May, according to a statement from the commission.
Despite a number of policies taken at the EU and national level, the bloc is only expected to return to growth in 2021.
The eurozone can anticipate a return to GDP growth at 6.1 per cent next year, while the whole EU should see a rebound of 5.8.
The forecast updates the grim picture of the bloc’s economic health following months of Covid-19 containment measures that saw shops, restaurants and hotels shuttered. Many of these measures have been gradually lifted in EU countries.
0Shares
0Comments
0Favorites
1Likes
Say something to impress...
Loading...
Comments
Hot

No content at this moment.

Relevant people
NAN
50412 Followers
The major source for all forms of information around the country
Related