- Eurozone GDP fell 12.1% in the second quarter, its biggest decline in history.
- This is significantly higher than the contraction of GDP in the first quarter of the euro area of 3.6%
- Spain was the country most affected, with a decrease of 18.5% over the previous quarter.
- The European Union struck a historic deal last week with a $ 860 billion recovery fund earmarked for rebuilding the 27-member bloc.
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Eurozone GDP fell 12.1% in the second quarter of the year, its biggest drop in the same quarter in history as the true impact of the coronavirus on the continent’s economy occurs.
GDP fell 12.1% in the euro area and 11.9% in the wider EU in the second quarter of the year, Eurostat data reported on Friday.
This is significantly higher than the contraction figures for the first quarter, where GDP fell by 3.6% in the euro area and 3.2% in the EU.
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GDP levels were also 15% lower in the euro area compared to the second quarter of 2019 and 14.4% lower in the EU.
The most successful countries were Spain, which fell by 18.5% in Q2 compared to the previous quarter and Portugal, which contracted by 14.1%.
Lithuania recorded the lowest decline of 5.1% over the previous quarter.
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Spain was one of the countries affected by the coronavirus pandemic in Europe and was one of the first economies in a blockade. Spain had a stricter blockade compared to other European counterparts, which means even lower economic activity.
Commenting on the latest figures, Las Akincilar, head of business at the online trading platform INFINOX, said: “The fall of the virus poses a major challenge not only to the health systems and economies of EU member states, but also to which is also a threat to the integrity of the blog. “
“To the fullest extent possible, European leaders agreed on a colossal rescue fund of 750 million euros at this month’s marathon summit. This agreement gave hope to Eurowatchers, but unemployment figures and growth they are clearly the other way around, the single currency is being kept under pressure, “he added.
European Union leaders reached a historic deal last week with a $ 860 billion recovery fund earmarked for rebuilding the 27-member bloc.
The euro-to-dollar exchange did not react much to the news and is trading at 1.18 euros per dollar.