Never before has the GDP of the Eurozone declined as much as it has now. The eurozone economy fell by 12.1 per cent, with Spain hardest hit.
The numbers published today showed a sharp contraction in the French and Spanish economies during the second quarter of the year.
France, one of the largest economies in Europe, fell by about 14 percent in the second quarter compared to January and March.
The economic situation is more serious in neighboring Spain, where the economy fell by about a fifth – 18.5 percent – compared to the first quarter. Spain is the fourth largest economy in the European Union.
Both France and Spain are now in recession. Other hard hit countries are Portugal and Italy, where the proportion of races was 14.1% and 12.4%, respectively, in the second quarter of 2020.
In France, the transport, hotel and restaurant sectors were the hardest hit. In Spain, the tourism sector in particular is the biggest loser.
The Spanish government expects this trend to continue for the rest of the year, and expects negative growth of around nine percent this year.
Germany announced yesterday that the country’s gross domestic product fell 10.1 percent during the second quarter of the year – the biggest collapse since the statistics agency began compiling quarterly numbers.
The hardest part
According to an expert spoken to by Agence France-Presse, the landslide is shocking but understandable given that economies have slowed down considerably for a long time during the quarter. The hard part starts now, when the recovery process is on the doorstep.
Of the 27 member states of the European Union, 19 have the single euro currency. For the entire federation, the landslide during the second quarter was slightly smaller: 11.9 percent.
European Union leaders will meet on Friday to discuss how to rebuild the eurozone economy and distribute the recovery fund.
Kallor: Reuters, Agence France-Presse, AP, Radio Sveriges, Deutsche Welle