Saturday, 29 January 2022

EU predicts region will contract 7.4% this year in worst economic shock

Reuters / File Photo

PARIS: European Commission President Ursula Von Der Leyen gives a press conference following a video conference EU summit to discuss the measures to tackle the spread of the Covid-19 pandemic caused by the novel coronavirus, in Brussels.

The European Union will contract 7.4% in 2020 as the coronavirus pandemic brings the worst economic shock since the Great Depression in the 1930s, the European Commission said Wednesday.

The executive arm of the EU has released its latest economic forecasts – the first estimates since European countries introduced lockdown measures to stop the spread of the virus. In February, the European Commission estimated a 1.4% rise in GDP for the EU this year.

“While the immediate fallout will be far more severe for the global economy than the financial crisis, the depth of the impact will depend on the evolution of the pandemic, our ability to safely restart economic activity and to rebound thereafter,” Valdis Dombrovskis, vice-president for economic affairs said in a statement.

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