EU Economic Outlook Bleaker Than Previously Thought

Voice of America
07 Jul 2020, 18:35 GMT+10

Saying the road to recover is "still paved with uncertainty," the European Union's economy minister Tuesday said the EU's economy will shrink more in 2020 and recover less in 2021 than originally forecast.

At a Brussels news conference, EU Economy Commissioner Paolo Gentiloni told reporters the COVID-19 pandemic has hit the European economy harder than previously expected and he is predicting the grouping of 19 EU nations that use the euro as their currency will see a record decline of 8.7% this year, and growth of 6.1% in 2021.

In May it had forecast a 7.8% decline this year, and growth of 6.3% in 2021.

The pandemic prompted businesses to shutter, travel between nations to stop and citizens to stay home in most European nations. Gentiloni said the lifting of lockdown measures is proceeding at a more gradual pace than assumed in their May forecast.

He said the forecast suggests France, Italy and Spain, among the nations hit worst by the pandemic, will see the most severe economic contraction, while Germany, the Netherlands and Poland will see milder economic downturns.

Gentiloni said lack of a "Brexit" deal with Britain would leave its trade status with the grouping uncertain, and "would be negative outcome for both sides, though particularly negative for the U.K."

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Switzerland Times.

More Information

null in null

Europe Business

Section

Ryanair CEO gets maximum bonus as Ryanair profits soar

Ryanair CEO O'Leary earns 3.83 million euros in 2025

DUBLIN, Ireland: Ryanair chief executive Michael O'Leary received a total pay package of 3.83 million euros for the financial year,...

EU slams China over Tibet in 40th human rights dialogue

Brussels [Belgium], June 16 (ANI): The European Union and China conducted the 40th iteration of their Human Rights Dialogue on 13 June...

"Direction looks positive": India's Acting High Commissioner in Canada ahead of talks between PM Modi, Carney

Calgary [Canada], June 16 (ANI): India's Acting High Commissioner to Canada, Chinmoy Naik, has expressed optimism over discussions...

Macron reaffirms EU support for Denmark's sovereignty, criticizes U.S. Greenland remarks

It is wrong when the United States keeps expressing a wish to take over Greenland, Macron said during a joint press conference in Nuuk...

PM Modi, Cyprus President Christodoulides attend Business Roundtable in Limassol

Limassol [Cyprus], June 15 (ANI): Prime Minister Narendra Modi and the President of Cyprus, Nikos Christodoulides, attended a business...

President of Cyprus receiving PM Modi reflective of strong ties: MEA

Larnaca [Cyprus], June 15 (ANI): Prime Minister Narendra Modi has arrived in Cyprus on his first visit to the Mediterranean country...

International

Section