The Eurozone economy has been hard hit by the COVID-19 pandemic plunging by a record 12.1 in the second quarter of 2020. Eurozone is made up of 19 out of the 27 member states in the European Union. The larger EU block experienced an 11.9% drop in its economy.
Spain, the fourth-largest economy in the European Union, was the hardest hit by the pandemic recording an 18.5% in GDP. This is because Spain was among the first countries to record cases of Coronavirus in the bloc. Spain is working on a recovery plan as well as modalities for sharing EU recovery funds. With a 5.2% contraction, its economy in 1Q 2020, Spain is officially in recession.
Other countries that have recorded a double-digit drop in their economies are Portugal, France, and Italy, dropping by 14.1%, 13.85, and 12.4%. While commenting on the results, Paolo Gentiloni, the EU Economic Commissioner, said all European countries were affected by the pandemic.
In France, the largest impact has been the loss of jobs as the country went into lockdown to curb the spread of the virus. The country has ruled out the possibility of a second lockdown even as infections rise.
Germany announces its largest drop in GDP
According to the report, Germany recorded its largest GDP drop since its quarterly system in 1970. The country recorded a 10.1% drop in its economy. Germany accounts for around a quarter of the EU economy.
U.S economy slumps by record 32.9% as pandemic rages on
The U.S has recorded a record drop in its economy with a 32.9% drop in 1Q 2020. This according to data released by the Department of Commerce on Thursday. The economy performed better than an earlier projection of 34.7%.
The world’s largest economy is going through a recession that saw the economy drop by 5%, with Q2 dropping by 1.8% drop Q1. The slump was mainly due to a sharp drop in export inventories, personal consumption, investment, and government spending. Personal consumption, which accounts for around two-thirds of the GDP shrunk 25% in Q2.