The recession due to the Corona pandemic will be, according to the latest forecast of the European Commission in this year even stronger than expected. The economic performance in the Eurozone could collapse, therefore, in 2020 to 8.7 percent, in the European Union as a Whole to 8.3 percent, as the authorities in Brussels announced on Tuesday. But she also saw the first signs that the low point could be reached and it is now upward. In may, the Commission had assumed a Minus of 7.7 percent for the 19 countries in the Eurozone and 7.4 percent for the whole of the EU, all 27 countries of the community of States.
The deterioration in the forecast, reasoned the Commission, that the cancellation of the Corona pads in smaller steps than at that time. “The economic consequences of the Lockdown are more serious than we expected originally”, said Commission Vice-President Valdis Dombrovskis. “We navigate in a stormy sea and face many risks, including a further major wave of Infection.” Also, the recovery in the coming year will be somewhat less robust than thought. The Commission is now predicting for 2021 in the Euro-zone is 6.1 per cent growth for the EU as a Whole is 5.8 per cent. In may, she had said values of 6.3 percent and 6.1 percent advance.
recovery in the second half of the year?
in the first quarter, the impact of the pandemic had been considerably, even though most of the States had first imposed in mid-March, output restrictions. Because of the long existing conditions, the decline in economic performance had then been in the second quarter of 2020 will be even greater. First, data for may and June pointed out that the worst could now be over.
