Mubasher: The eurozone economy will slide deeper into recession in 2020 and recover in 2021 less than previously expected due to the repercussions of the coronavirus (COVID-19) pandemic, Reuters reported on Tuesday, citing the European Commission (EC) as saying.
The 19-country block will shrink by 8.7% in 2020 before growing by 6.1% in 2021, compared to the EC’s previous forecast of a 7.7% drop and a 6.3% growth in 2020 and 2021, respectively, the EC said.
The EC revised its forecasts because lifting COVID-19 lockdown measures in eurozone countries was proceeding at a more gradual pace than it had initially predicted.
France, Italy, and Spain, all hit hard by the crisis, are expected to struggle the most.
The EC lowered its previous growth forecasts for France, Italy, and Spain, and now expects downturns more than 10% this year in each country.
On the other hand, Germany, which had fewer coronavirus fatalities, is expected to shrink by 6.3% from a previous expectation of 6.5%.