European Commission forecasts Eurozone GDP to contract -7.7% in 2020, then rebound by 6.3% in 2021. Inflation is projected to slow sharply to 0.2% in 20202, then climb back to 1.1% in 2021. Unemployment rate would jump to 9.6% in 2020, then fall back to 8.6% in 2021.
EU GDP is projected to contract -7.4% in 202, then rebound by 6.1% in 2021. Inflation would drop to 0.6% in 2020, then climb back to 1.3% in 2021. Unemployment rate would surge to 9.0% in 2020, then fall back to 7.9% in 2021.
Valdis Dombrovskis, Executive Vice-President for an Economy that works for People, said, the coronavirus pandemic is a “symmetric shock” as all EU countries are expected to fall into recession this year. The collective recovery will “depend on continued strong and coordinated responses at EU and national level.”
Paolo Gentiloni, European Commissioner for the Economy, said, “Both the depth of the recession and the strength of recovery will be uneven, conditioned by the speed at which lockdowns can be lifted, the importance of services like tourism in each economy and by each country’s financial resources. Such divergence poses a threat to the single market and the euro area”.
