Home / Knowledge / News / Textiles / Deeper recession forecast for EU economy

Deeper recession forecast for EU economy

09
Jul '20
Pic: Shutterstock
Pic: Shutterstock
The European Union (EU) economy will witness a deep recession this year due to the novel coronavirus pandemic despite the swift and comprehensive policy response at both EU and national levels, the bloc said. Because the lifting of lockdown measures is proceeding at a more gradual pace than assumed in its Spring Forecast, the impact on economic activity this year will be more significant than anticipated.

The bloc’s Summer 2020 Economic Forecast projects that the Euro area economy will contract by 8.7 per cent in 2020 and grow by 6.1 per cent in 2021. The EU economy is forecast to contract by 8.3 per cent in 2020 and grow by 5.8 per cent in 2021.

The contraction in 2020 is, therefore, projected to be significantly greater than the 7.7 per cent projected for the euro area and 7.4 per cent for the EU as a whole in the Spring Forecast. Growth in 2021 will also be slightly less robust than projected in the spring.

The impact of the pandemic on economic activity was already considerable in the first quarter of 2020, even though most member states only began introducing lockdown measures in mid-March. With a far longer period of disruption and lockdown taking place in the second quarter of 2020, economic output is expected to have contracted significantly more than in the first quarter, EU said in a press release.

However, early data for May and June suggest that the worst may have passed. The recovery is expected to gain traction in the second half of the year, albeit remaining incomplete and uneven across member states.

The shock to the EU economy is symmetric in that the pandemic has hit all member nations. However, both the drop in output in 2020 and the strength of the rebound in 2021 are set to differ markedly. The differences in the scale of the impact of the pandemic and the strength of recoveries across member states are now forecast to be still more pronounced than expected in the Spring Forecast.

The overall outlook for inflation has changed little since the Spring Forecast, although there have been significant changes to the underlying forces driving prices.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Retail | On 10th Aug 2020

EU retail trade volume level returns to pre-COVID level

In June 2020, a month marked by some relaxation of COVID-19...

Pic: Shutterstock

Textiles | On 10th Aug 2020

Pak TPB to rationalise textile sector tariff structure

Pakistan's Tariff Policy Board has decided to rationalise the tariff...

Pic: Shutterstock

Retail | On 10th Aug 2020

Japan's World Co to shut 358 stores by March 2021

World Co, a clothing company headquartered in Kobe, Japan, will close ...

Interviews View All

Yashiki Gumber, Sahiba Fabrics

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Textile Industry, Head honchos

Textile Industry
Head honchos

Cooperate and collaborate for greater good

Pratik Bachkaniwala, Palod Himson Machines

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Fabio Grandis,

Fabio Grandis

Italian company Grandis SRL has been operating in the textile industry for ...

Joachim Maier,

Joachim Maier

Switzerland-based Uster Technologies AG is the leading high technology...

John Kelley,

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search