Europe’s economy shrank by 11.9% in the second quarter as the coronavirus pandemic plunged the region into a deep recession.
The quarter-on-quarter fall in EU GDP is the worst on record. Compared with the same period a year ago, the fall in output was even bigger — 14.4% — making it worse than the 9.5% slump recorded Thursday by the United States.
Recent surveys of business activity suggest Europe’s economy is now in recovery mode.But the specter of another wave of coronavirus cases looms.
Germany’s center for disease control, the Robert Koch Institute, said this week that a recent spike in cases was “very disturbing.” In France, new daily cases have crept back to the same level as when its lockdown lifted in early May. Spain and Italy have also recorded increases.
The United Kingdom recently reimposed quarantine measures for travelers arriving from Spain, a move that will slow the recovery in its vital tourism industry.
Germany, Europe’s biggest economy, suffered less than other big EU countries in the second quarter, reporting a 10.1% hit to GDP.
France, Italy and Spain, which were hit harder by the pandemic, recorded falls of 13.8%, 12.4%, and 18.5%, respectively.
According to the latest forecast from the European Commission, the EU economy will shrink 8.3% in 2020. The forecast assumes that restrictions will continue to ease, and that there won’t be a major second wave that triggers large-scale quarantine measures.
Source : CNN