Italy, Spain and France will register the worst economic downturn among eurozone countries this year as the contraction will be more severe than previously expected, according to the latest European Commission forecast published on Tuesday (7 July).
The economies of EU countries will shrink by 7.4% this year as the coronavirus crisis is set to cause the worst recession in the bloc’s history, according to the European Commission's spring forecast presented on Wednesday (6 May), which also foresaw a significant rebound in 2021.
The European Commission expects the Spanish economy to contract by as much as 9.4% this year due to the impact of the coronavirus, although it should regain some of the lost ground in 2021, when it is expected to grow by 7%, EU sources told EURACTIV.
The European Commission kept unchanged its economic forecast for moderate eurozone growth for this year and 2021 despite the impact of looming risks, especially the coronavirus.
The European Commission will not factor in the coronavirus in its updated growth forecast on Thursday (13 February), as it considers that it is too early to estimate the impact of the virus on the region’s output, EU sources told EURACTIV.
EU member states should be prepared for “all scenarios” as the European economy continues to decelerate, and is not expected to pick up in the near future, the European Commission warned in its latest economic forecast published on Thursday (7 November).
The European Commission kept its growth forecast unchanged at 1.2% on Wednesday (10 July) but revised downwards inflation to 1.3% for this year and the next, strengthening the case for further monetary stimulus as global economic risks worsen.
The European Commission cut expected EU growth for this year by 0.2% compared to its forecast less than three months ago, as output was weaker than expected during the first semester and external risks, especially the trade war, are on the rise.
US President Donald Trump’s decision to leave the Iran deal represents his third strike against the European economy in half a year and will add more volatility in an already difficult period.