Eurozone economy to shrink 7.75 per cent in 'historic' recession

Brussels - Eurozone gross domestic product (GDP) will contract 7.75 per cent this year in a recession of "historic proportions," according to the first official forecast for the post-lockdown economy from the European Commission.

The rate of unemployment in the 19-country currency area is also to rise, to 9.5 per cent in 2020, up from 7.5 per cent last year, EU officials estimate.
"Europe is experiencing an economic shock without precedent since the Great Depression," EU economy commissioner Paolo Gentiloni said. "Both the depth of the recession and the strength of recovery will be uneven," he said on Wednesday.
Eurozone GDP growth should rebound to 6.25 per cent in 2021, EU officials estimate, while the rate of joblessness should reach 8.5 per cent.

The forecast is based on the assumption that the coronavirus lockdown measures are to be gradually eased from May onwards, the EU executive stresses.

Wednesday, May 6th 2020

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