- Eurozone GDP fell 12.1% in the second quarter, the biggest decline in its history.
- This is significantly higher than the contraction of the Q1 GDP of the Eurozone of 3.6%
- Spain was the worst hit country, suffering a decline of 18.5% compared to the previous quarter.
- The European Union reached a historic deal last week on a $ 860 billion recovery fund aimed at rebuilding the bloc’s 27 members.
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Eurozone GDP fell 12.1% in the second quarter of the year, its biggest single-quarter drop in history as the true impact of the coronavirus on the continent’s economy emerges.
GDP fell 12.1% in the euro area and 11.9% in the wider EU in the second quarter, Eurostat data showed on Friday.
This is significantly higher than the contraction figures for Q1, where GDP fell by 3.6% in the euro area and by 3.2% in the EU.
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GDP levels were also 15% lower in the euro area compared to Q2 2019, and 14.4% lower in the EU.
The countries most affected were Spain, which suffered an 18.5% decline in Q2 compared to the previous quarter, and Portugal which fell by 14.1%.
Lithuania recorded the lowest decrease of 5.1% compared to the previous quarter.
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Spain was one of the first countries to be seriously affected by the coronavirus pandemic in Europe, and was one of the first economies to be put on hold. Spain had a tighter suspension compared to other European counterparts, ie even lower economic activity.
Commenting on the latest figures, Las Akincilar, head of trading at the online trading platform, INFINOX, said: “The fall from the virus now poses a major challenge not only for healthcare systems and the economies of the EU member states – it is also a threat to the integrity of the bloc. “
“Against all odds, European leaders agreed on a colossal € 750 billion bailout at a marathon summit this month. That deal gave Eurowatchers hope, but the figures Rocket unemployment and growth have stalled sharply, the single currency is under pressure, “he added.
European Union leaders reached a historic deal last week on a $ 860 billion recovery fund aimed at rebuilding the 27-member bloc.
The euro for the dollar exchange has not reacted much to the news and is trading at 1.18 euro per dollar.