The euro zone economy is already in its deepest recession on record, according to a Reuters poll of economists, who have stuck to a bleak outlook and worry the downturn might be even worse as coronavirus lockdowns across the bloc take their toll.
FILE PHOTO: European Union flags flutter as uncertainty over Brexit continues, in London, Britain April 10, 2019. REUTERS/Gonzalo Fuentes
The euro zone economy was then expected to grow 5.2% in the third quarter and 2.9% in the final quarter of this year, compared with 6.0% and 2.0% forecast in the poll a few weeks ago. For 2020 as a whole, GDP was forecast to contract 5.4%, the worst year since the common currency was introduced in 1999. That is still better than the International Monetary Fund’s latest forecast for a decline of 7.5%.
The euro zone’s three largest economies - Germany, France and Italy - have been severely affected by the COVID-19 virus and while the curve for new cases has declined, the lockdowns were still in place.
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