In the second quarter, the euro zone recorded a decline of 12.1% of its GDP. The European Commission anticipates a plunge of 8.7% of GDP over the year.
A historic decline since 1995
The European Statistical Office Eurostat announced, this Friday, July 31, that the GDP of the euro area fell 12.1% in the second quarter, due to containment measures linked to the Covid-19. In its press release, Eurostat underlined that this is the largest decline on record since 1995.
During the first trimester, the GDP in the euro zone fell 3.6%. Moreover, it fell 11.9% in the second quarter for the whole ofEuropean Union. At the national level, the figures are disastrous, as in Spain (-18.5%), Portugal (-14.1%), France (-13.8%), Italy (-12.4%) or again in Belgium (-12.2%).
However, this estimate is based on incomplete data. According to the institute, it will therefore be subject to revisions.
Devastating economic effects
At the beginning of July, Brussels had already warned of the devastating effects of the pandemic of coronavirus on the economy of eurozone, relates Le Figaro. However, the Commission anticipates a rebound in 2021 (+ 6.1%).
About the inflation rate, it progressed slightly in July in the eurozone, according to a Eurostat estimate. In particular, it stands at 0.4% against 0.3% in June. In addition, core inflation rose in July (1.2% compared to 0.8% in June).
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