EU "Unprecedented Economic Recession Since the Great Depression Expected Due to COVID-19"

Eurozone GDP Expected to Decline by 7.7% This Year

[Image source=AP Yonhap News]

[Asia Economy Reporter Jin-gyu Lee] The European Union (EU) Commission announced on the 6th (local time) that the EU economy will experience an unprecedented recession this year due to the impact of the novel coronavirus disease (COVID-19).

According to foreign media, the EU executive branch forecasted in the '2020 Spring Economic Forecast' that the Gross Domestic Product (GDP) of the Eurozone, which refers to the 19 member countries using the euro, will decrease by 7.7% this year. The EU GDP is expected to decline by 7.5%.

Paolo Gentiloni, EU Commissioner for Economy, stated, "Europe will experience an unprecedented economic shock since the Great Depression of 1929," adding, "The depth of the recession and the strength of the recovery will be uneven."

The unemployment rate in the Eurozone is also projected to rise from 7.5% last year to 9.6% this year. The Eurozone GDP is expected to increase again by 6.3% in 2021, and the EU is anticipated to grow by 6% in the same year.

However, the level of recovery is expected to vary by country. Italy, which suffered severe damage from COVID-19, is forecasted to see its GDP decrease by 9.5% this year and then increase by 6.5% next year. Germany is expected to decline by 6.5% this year and recover by 5.9% in 2021.

This content was produced with the assistance of AI translation services.