Bloc forecasts average 7.4% GDP loss in 2020, with one in five workers unemployed in Greece, Spain
The EU, over the pandemic, has entered the deepest economic recession in its history, the bloc’s commissioner for economy said on Wednesday.
“The coronavirus caused an unprecedented economic crisis,” Paolo Gentiloni said.
Gentiloni presented the EU’s 2020 spring economic forecast, and according to the report, its gross domestic product (GDP) is expected to contract 7.4% in 2020.
“Both recession and recovery will be uneven,” he stressed.
Inflation will be significantly weaker due to the fall of consumer prices, while unemployment is set to rise despite government measures, he added.
Among EU countries, Greece, Italy, Spain, and Croatia are expected to record the biggest economic fallout in 2020 with more than 9% loss of their GDPs (minus 9.7, minus 9.5, minus 9.4, and minus 9.1%, respectively).
France’s economy will shrink 8.2%, while Germany can prepare for a 6.5% fallout.
But the European Commission estimates an economic relaunch for the bloc in 2021 with an average 6.1% of GDP growth.
Unemployment rate may rise to 9% in average this year, but the number features great national differences.
Nearly one in five workers might lose their jobs in Greece and Spain with an expected 19.9% and 18.9% unemployment rate. The ratio will only be 4% in Germany.
The report foresees a very mild improvement for 2021 with 7.9% EU-wide unemployment rate, maintaining nearly 17% ratio in Greece and Spain.
Consumer prices are expected to grow 0.6% this year, and 1.3% in the next one.
Turkey’s economic loss will be lower than the EU average, according to the spring forecast.
The GDP is supposed to shrink 5.4% in 2020, and grow 4.4% the year after.
After originating in China last December, COVID-19 has spread to at least 187 countries and regions. Europe and the US are currently the worst-hit regions.
The pandemic has killed more than 257,800 worldwide, with total infections over 3.68 million, while recoveries exceeded 1.2 million patients, according to figures compiled by the US-based Johns Hopkins University.