EU Economy Will Shrink 8.3 Percent!

EU Economy Will Shrink 8.3 Percent!

The European Union (EU) economy will shrink 8.3 percent due to the new type of coronavirus (Covid-19) outbreak that affects the entire world. The EU Commission has published its economic forecasts for the summer of 2020 in a report entitled "Deeper recession with broad differences". In the report in question, it is predicted that the Eurozone will shrink 8.7 percent this year and will grow 6.1 percent next year.

Downsizing Rates of Europe's Leading Actors

According to the report, the shrinkage rates of the countries that make up a large part of the European economy will be as follows:

• Germany 6.3 percent
• France 10.6 percent
• Italy 11.2 percent
• Spain 10.9 to face
• Netherlands 6.8 percent
• Belgium 8.8 percent
• Greece 9 percent
• Austria 7.1 percent

Various measures were taken by the countries in the context of the fight against Covid-19, and these measures also caused serious damage to the economies of the country. As of June, countries that have entered the normalization process have begun to gradually lift the restrictive measures they have taken. According to the information in the report, the slow removal of coronavirus measures than expected will continue to affect economic activities. Accordingly, the EU economy will experience a deep recession in 2020. The EU Commission stated that the report prepared was based on the assumption that there would be no second wave and that the measures taken would be lifted flexibly. He stressed that even with these assumptions, points such as the extent and duration of the outbreak and the uncertainty of future measures increase downside risks. In the report, it was pointed out that the failure to conclude an agreement on the future between the EU and Britain, which will affect both sides negatively. The commission stated that the Covid-19 vaccine could be developed more quickly and that the recovery program they prepared could be accepted by the member countries. Paolo Gentiloni, EU Commissioner for the Economy, who held a press conference on the issue, said: "The epidemic affected the European economy harder than expected.".