- Eurozone GDP fell by 12.1% in the second quarter, its greatest decline in historical past.
- This is considerably larger than the Eurozone’s Q1’s GDP contraction of three.6%
- Spain was the worst hit nation, struggling an 18.5% decline in comparison with the earlier quarter.
- The European Union clinched a historic deal final week on an $860 billion recovery fund aimed at the reconstruction of the 27-member bloc.
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Eurozone GDP fell by 12.1% in the second quarter of the yr, its greatest single quarter drop in historical past as the coronavirus’ true impression on the continent’s economic system emerges.
GDP fell by 12.1% in the euro space and 11.9% in the wider EU in the second quarter of the yr, data by Eurostat confirmed Friday.
This is considerably larger than Q1 contraction figures, the place GDP fell by 3.6% in the euro space and by 3.2% in the EU.
GDP ranges have been additionally 15% decrease in the euro space in comparison with Q2 2019, and 14.4% decrease in the EU.
Countries that have been most arduous hit have been Spain, whic hsuffered an 18.5% decline in Q2 in comparison with the earlier quarter, and Portugal which contracted by 14.1%.
Lithuania recorded the lowest decline of 5.1% in comparison with the earlier quarter.
Spain was one among the international locations to be first be severely hit by the coronavirus pandemic in Europe, and was one among the first economies to be positioned beneath a lockdown. Spain had a extra stringent lockdown in comparison with different European counterparts, which means even decrease financial exercise.
Commenting on the newest figures, las Akincilar, heads of buying and selling at the on-line buying and selling platform, INFINOX, stated: “The fallout from the virus now poses a major challenge not just to the healthcare systems and the economies of the EU member states — it’s also a threat to the bloc’s integrity.”
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“Against all the odds, European leaders agreed a colossal €750 billion rescue fund at a marathon summit this month. That deal gave Eurowatchers cause to hope, but with unemployment figures rocketing and growth stuck firmly in reverse, the single currency is coming under sustained pressure,” he added.
Leaders of the European Union reached a historic deal final week on an $860 billion recovery fund aimed at the reconstruction of the 27-member bloc.
The euro to greenback alternate did not react a lot to the information and is buying and selling at 1.18 euros per greenback.