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.
“RECESSION AND RECOVERY WILL BE UNEVEN”
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.
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.
The GDP is supposed to shrink 5.4% in 2020, and grow 4.4% the year after.