European Commission forecasts deeper recession for 2020

European Commission forecasts deeper recession for 2020

The economy in the European Union will plunge deeper into recession for 2020 and may recover only slightly in 2021 than previously thought, the European Commission predicted on Tuesday. The downbeat assessment of Europe’s economy comes as concerns piled over the U.S. recovery the surge of new coronavirus infections.

The EU executive said the 19-nation single currency area could contract by a record 8.7% this year before growing slighly by 6.1% in 2021. In early May, the Commission had forecast a 2020 downturn of 7.7% and a 2021 rebound of 6.3%.

The EU executive also significantly cut its earlier forecasts for France, Italy and Spain, which have been severely affected by the COVID-19 pandemic, and now expects now downturns in excess of 10% this year in each.

Economics Commissioner Paolo Gentiloni told a news conference that in order to reduce risks of a second recession, EU fiscal rules could remain frozen even after growth saw returns next year.

Gentiloni said that the rules may be reactivated only when the bloc’s output returns to levels closer to that of last year. However, no decision has been made and the matter remains controversial.

The Commission also said its inflation forecasts were little changed, at 0.3% this year and 1.1% in 2021.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?