Europe's economy will contract more sharply this year and take longer to recover from the coronavirus pandemic than previously expected, piling pressure on EU leaders to finalize plans for a huge recovery package.
"The scale and duration of the pandemic, and of possibly necessary future lockdown measures, remain essentially unknown," the Commission said, adding that the downside risks to its forecast are"exceptionally high." The huge uncertainty also means that the economy could bounce back more strongly than expected.
The relief package would come on top of €540 billion in existing EU stimulus efforts, as well as countries' own aid packages, and would be welcome relief to countries including Spain, Italy, Portugal and Greece, which rely more heavily on tourism and have been particularly hard hit by the fallout from coronavirus.
The new forecast provides a"powerful illustration" of the need for a deal on relief measures, Dombrovskis said. Italy, which has suffered the highest coronavirus death toll in Europe, is expected to contract 11.2% this year, the worst decline in the region. The country's GDP is not expected to return to last year's level before 2022, the Commission said. The economies of France and Spain will also shrink by over 10%.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Coronavirus spreading now in Korea has its origin in Europe, USThe novel coronavirus spreading in South Korea now has its origin in Europe and the US, health authorities said Monday, and it is known to be six times as infectious as the original strain that emerged in China. AsiaNewsNetwork
Read more »
Eurozone economy to crash 8.7 percent in 2020: EU forecast
Read more »
Euro zone set for deeper recession, less steep rebound: European Commission
Read more »
Stock markets rally on economy recovery hopesThe easing of lockdowns is providing hope the global economy will bounce back quickly from an expected recession in 2020.
Read more »
Groups file Supreme Court petitions vs anti-terror law | Evening wRapWatch Rappler’s evening newscast with Michelle Abad
Read more »