The European economy will face a “deeper recession” than previously predicted due to the prolonged containment measures against COVID-19, the European Commission said in its Summer 2020 Economic Forecast.
The euro area economy is forecast to contract by about 8.75 percent in 2020 before recovering by 6 percent next year, said the Commission.
Meanwhile, the European Union (EU) economy is forecast to contract by 8.3 percent in 2020 and grow by 5.8 percent in 2021, it added.
Compared with the spring forecast published in May, the summer one’s projection on the economic contraction in 2020 are somewhat dimmer and recovery in 2021 slower.
In its spring forecast, the Commission projected that the euro area economy would contract by 7.75 percent in 2020 and grow by 6.25 percent in 2021, and the EU economy was forecast to contract by 7.5 percent in 2020 and grow by around 6 percent in 2021.—Xinhua