The eurozone’s gross home product (GDP) plummeted by a record 12.1% in the second quarter amid the Corona Virus pandemic, based on quarter-on-quarter estimates from the European Union statistical workplace Eurostat launched on Friday.
It is the sharpest GDP decline noticed since Eurostat began releasing its figures in 1995 and divulges the injury sustained throughout three months that noticed most of Europe shutdown outlets, eating places and factories to curb the unfold of the brand new Corona Virus.
According to the flash estimate, financial output in the entire of the EU dropped barely much less, but in addition dramatically – by 11.9%.
The figures confirmed that the Corona Virus pandemic has had “unprecedented penalties for all European international locations,” EU Economy Commissioner Paolo Gentiloni wrote on Twitter.
The senior official additionally took the chance to make a plug for the not too long ago agreed, however not but formally signed off, stimulus plan to relaunch the bloc’s virus-stricken economies: “#nextgenerationeu,” his tweet learn – the official title for the 750-billion-euro ($888 billion) package deal.
Countries worldwide have imposed Corona Virus-related restrictions, reminiscent of lockdowns or journey restrictions. With tourism largely grinding to a halt and commerce being severely affected, the worldwide economic system is predicted to see one of many worst recessions since World War II.
Of the figures printed for 10 international locations in the bloc, Spain noticed the sharpest drop as its GDP dropped by 18.5%.
The earlier quarter noticed a drop of three.6% in the euro zone and three.2% in the EU, respectively.
Governments and consultants worldwide have raised alarm about an financial recession of historic dimensions.
On Thursday, the United States introduced a grim 32.9% contraction of its economic system.
Eurostat’s flash estimate relies on “information sources which can be incomplete and topic to additional revisions beneath the COVID-19 containment measures.”
A brand new, extra full, estimate will probably be launched mid-August, the workplace stated.
Compared to the identical interval final yr, GDP dropped even additional: by 15% in the eurozone and 14.4% in the EU.
At 0.4%, in the meantime, the inflation price in July stayed well-below the two% that the European Central Bank goals for to strike a stability between development and stability.