Eurozone countries will experience a severe recession this year as a direct result of the lockdowns and consequent economic shutdown to contain the Covid-19 pandemic.
Total GDP in the Eurozone is projected to contract by 10.2% in 2020.
According to a new forecast by the International Monetary Fund, the covid-19 pandemic had a more negative impact on economic activity than anticipated while recovery is projected to be more gradual than previously forecast.
Germany’s GDP will contract by 7.8%, France by 12.5% while IMF projects Spain’s and Italy’s GDP to both plunge 12.8% respectively, according to International Monetary Fund data.
Elsewhere in Europe, outside the eurozone, the United Kingdom’s GDP is projected to contract by 10.2% – much more than the 6.5% drop estimated in April.
Globally, the crisis economic impact is particularly worrying on low-income households, jeopardizing decades-long progress made in reducing extreme poverty.