- Eurozone GDP declined by 12.1% in the second quarter, its biggest decline in history.
- This is significantly higher than the Eurozone’s GDP contraction of 3.6% in Q1
- Spain was the most affected country, falling 18.5% compared to the previous quarter.
- The European Union signed a landmark deal last week on an $ 860 billion recovery fund aimed at rebuilding the 27-member bloc.
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Eurozone GDP declined by 12.1% in the second quarter of the year, its biggest single-quarter decline in history as coronovirus has a real impact on the continent’s economy.
GDP fell 12.1% in the euro area and 11.9% in the broader European Union in the second quarter of the year, data from Eurostat showed on Friday.
This is significantly higher than the contraction figures for Q1, where GDP fell by 3.6% in the euro area and 3.2% in the European Union.
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The level of GDP was also 15% lower in the euro area than in Q2 2019, and 14.4% lower in the European Union.
The countries with the hardest hit were Spain, which reported an 18.5% drop in Q2 compared to the previous quarter, and Portugal which contracted by 14.1%.
Lithuania recorded the lowest decline of 5.1% compared to the previous quarter.
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Spain was one of the first countries to be exposed to the coronovirus epidemic in Europe, and was one of the first economies to be placed under lockdown. Spain had a more stringent lockdown than other European counterparts, which also meant lower economic activity.
Commenting on the latest figures, Las Anskiller, heads of trade on the online trading platform, Infinox, said: “The decline from the virus is now a major challenge not only to the health systems and economies of EU member states – the integrity of the block Threat to. “
“Against all odds, European leaders agreed to a € 750 billion hedge fund at a marathon summit this month. The deal gave Eurochakers a cause for hope, but rocketing with unemployment figures and strengthening with growth Unlike the stuck, single currency is constantly moving. Pressure, “he said.
EU leaders reached a landmark deal last week on an $ 860 billion recovery fund aimed at rebuilding the 27-member bloc.
The Euro to Dollar exchange did not react much to this news and is trading at 1.18 Euro per dollar.