Reuters
- Eurozone GDP fell 12.1% in the second quarter, its biggest decline in history.
- This is significantly higher than the contraction of the Eurozone GDP of 3.6% from 3.6%
- Spain was the most affected country, with a decrease of 18.5% compared to the previous quarter.
- The European Union closed a landmark deal last week with a $ 860 billion recovery fund aimed at rebuilding the 27-member bloc.
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Eurozone GDP fell 12.1% in the second quarter of the year, its biggest single-quarter decline in history as the true impact of coronavirus emerges on the continent’s economy.
GDP fell 12.1% in the euro area and 11.9% in the EU overall in the second quarter of the year, Eurostat data showed on Friday.
This is significantly higher than the first quarter contraction figures, where GDP fell 3.6% in the euro area and 3.2% in the EU.
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GDP levels were also 15% lower in the euro area compared to the second quarter of 2019, and 14.4% lower in the EU.
The most affected countries were Spain, which suffered a decrease of 18.5% in the second quarter compared to the previous quarter, and Portugal, which contracted by 14.1%.
Lithuania registered the lowest decrease of 5.1% compared to the previous quarter.
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Spain was one of the countries to be the first to be severely affected by the coronavirus pandemic in Europe, and was one of the first economies to be blocked. Spain had a tighter block compared to other European counterparts, which means even less economic activity.
Commenting on the latest figures, Akincilar, chief commerce officer of online trading platform INFINOX, said: “The consequences of the virus now represent a major challenge not only for the health systems and economies of the member states of the EU is also a threat to the integrity of the bloc. “
“Against all odds, European leaders agreed to a colossal € 750bn bailout fund at a marathon summit this month. That deal gave eurowatchers reason for hope, but with soaring unemployment figures and stagnant growth firmly in reverse, the single currency remains sustained pressure, “he added.
European Union leaders reached a landmark deal last week on a $ 860 billion recovery fund for the rebuilding of the 27-member bloc.
The change from euro to dollar did not react much to the news and is trading at 1.18 euros per dollar.
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