The European Commission Again Lowered the Economic Forecast for EU Countries

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Brussels believes that the coronavirus pandemic will undermine the European economy more than previously thought. For the eurozone countries, a plunge of 8.7 percent is projected. The SARS-CoV-2 coronavirus pandemic will undermine the European economy more than initially expected, the European Commission (EC) said. On Tuesday, July 7, the forecast for 2020 was again given minus adjustment. Experts now believe that GDP in the EU countries will decrease by 8.3 percent, and in the eurozone countries - by 8.7 percent. Back in early May, the EC warned that a crisis due to coronavirus would cause an unprecedented deep recession in EU countries. Brussels, however, then believed that the collapse of the economy would be 7.4 percent for all 27 EU countries and 7.7 percent for the eurozone countries. Pessimistic forecast A European Commission report released on July 7 noted that in France, Italy, and Spain, which were hit hardest by the pandemic, GDP will decline by more than 10 percent in 2020. For Germany, the EC forecast has not changed much: the economy is expected to contract by 6.3 percent (in the May forecast it was 6.5 percent). The European Commission still expects the European economy to rebound in 2021. Growth in the EU countries is expected at 5.8, and in the eurozone countries at 6.1 percent.