Eurozone faces even deeper recession of 8.7 per cent, forecast shows

Brussels The European Commission expects gross domestic product (GDP) to contract by 8.7 per cent in the eurozone this year, according to its latest forecast, significantly deeper than the 7.7-per-cent decline predicted in May.

In 2021, the 19-country currency area should brace for a "slightly less robust" recovery than previously modelled, at 6.1-per-cent growth, according to a statement from the commission.

For the whole 27-member European Union, a GDP downturn of 8.3 per cent is forecast in 2020, followed by a return to growth at 5.8 per cent next year.
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.
According to the EU's executive arm, "early data for May and June suggest that the worst may have passed." However, the forecast is predicated on the assumption there is no major second wave of coronavirus infections.

Tuesday, July 7th 2020

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