Global economies are worried about contraction following the protracted effect of the Coronavirus pandemic. While there are countries that are still downplaying the long-term effects of how the virus-influenced stopping of economic activities, there are others who have had to be open about the economic impacts of the virus.
Countries in the Eurozone, however, have shared that their economies have taken a significant brunt because of the pandemic-related crises. Data released by Eurozone’s office of statistics has revealed that the region’s Gross Domestic Product (GDP) have shrunk by slightly over 12 per cent.
This shrinkage has come for 2020’s second quarter for the month-ending of June.
Eurozone's GDP figures narrow for April-June quarter
Worrisome as the figure is, its impact is also felt on the macro scale when considered that this is the lowest GDP figure for the region in almost 25 years, going back to 1995.
Commenting on these figures, Capital Economics’ Chief Europe Economist Andrew Kenningham said, as quoted by CNBC, “While parts of the economy have sprung back to life over the past couple of months, the damage already done combined with the current and potential future impact of the virus mean that the recovery will be painfully slow”.
GDP of each of the 19 countries that forms a part of the Eurozone has been affected because of Coronavirus-caused problems. Especially countries that have larger economies suffered the most. Germany’s Gross Domestic Product (GDP) was down by a little over 10 per cent while Italian GDP came down by around 12.4 per cent.
France and Spain’s Gross Domestic Product (GDPs) fell by 13.8 and 18.5 percent respectively. Of the four countries, Spain’s figures meant that it ended up becoming the worst performer in the Eurozone. In comparison to this three-months’ numbers, Gross Domestic Product (GDP) numbers for the first three months of the year in the Eurozone were down by around 3.6 per cent.
Italy, France and Spain’s GDPs, however, still dipped on a slightly higher side at around five percent each. Despite the laggardness in the Gross Domestic Product (GDP) in the second quarter, analysts expect the numbers to come up in the year’s third quarter.
The European Central Bank has, however, added that Gross Domestic Product (GDP) figures in the Eurozone could receive a boost in the next quarter (July-September).