The economy of the 19 Eurozone countries fell by 12.1% in the period from April to June compared with the previous quarter. This is the largest recession in history caused by the introduction of self-isolation of citizens, the closing of businesses and decline in consumer spending.
In just five months, the coronavirus has destroyed the gains made over the years of growth. The deeper the lockdown, the more likely long-term damage to the overall economy.
Powerful lethal outbreak in Spain in the second quarter eliminated more than a million jobs, mainly in services and tourism. But this country is among the European recovery plan provides the most help.
And yet, losing 18.5% of GDP Spain could enter a period of protracted recession.
Germany, France and Italy experienced a similar decline between 10 and 14%. No country in the Eurozone has not escaped the harmful impact of the pandemic.
Since the end of April, the economies with a common currency began to grow again. Recent data indicate a gradual recovery in retail sales and industrial production, but this is mainly due to the fact that the shops and factories open again, despite the risk of infection to staff and clients.
“Measures of lockdown has been significantly weakened since may, said the Hungarian economist Zsolt Darvas. – So we will see some recovery in the next quarter, but I fear that it is not complete. Return to previous levels will be long and painful. Some sectors will suffer continuously for many, many years.”
The hardest part of this recovery must begin now. First, the new flash Covid-19, although local, again forced to close businesses and institutions. Secondly, rising unemployment, bankruptcies and the weakening of investment reinforce the negative trends in the economy and postpone the prospects of GDP growth to pre-crisis levels.